If your goal is to flip this property, proceed with caution. These strategies typically only work for the novice investor/speculator in appreciating markets, as appreciation will serve as a hedge against any downside risk or mistakes in calculation.
If you are purchasing to live, it's a different ball of wax all together. This area has been addressed well by the below responses.
I would caution, as much as possible, not to make a decision based entirely on emotion. The real estate market is truly in a glut. And to get out of it based on solid fundamentals, we need purchasers to be realistic.