Townhouse for $110K with No Association

I found a townhouse near my area that on the market as a conventional sale (not bank or homepath owned). The property is going for $110K and its a small 2 bedroom, 1.5 bath, 1 car garage, all appliances like new along with washer/dryer. New carpeting, paint looks really good and the furnace and ac/blower look good. Maybe the ac unit needs to be replaced in a few years. Its in a good area near a major highway and plenty of shopping available (Target, Mall, Walmart, Jewel, etc...).

My question is, should I jump into this property as I am looking to purchase it and rent it out. I feel that $110K is a little too high as Zillow valued the property at $88K. I heard that some houses although priced a little higher than market can actually be good cash flow producing property. So, I ask you season investors, is that is good investment?

I'm looking forward to your feedback.

Best,

Rob