2/1 Small Lot Deal Advice in Los Angeles, CA

[Walter Roby jr]

I am working a potential deal where a seller wants out all cash with no contingencies in Los Angeles, CA. 

House is a 2/1 SFR 790 sqft but the lot is only 2200sqft! There are current non-paying family tenants, needs a lot of work although livable, and the owner just wants out. They have owned it for 40 years and is paid off. She has no time to show it and pretty much wants it sold sight unseen. Not very many recent comps but a nearby 2/1 880 sqft on a 2300 sqft lot sold (12/20/2016) for $540k fully renovated.

I am cautious of the small lot and cautious to offer sight unseen. 

Some risk-factors to consider: Small Lot, Top of the market, Not many Comps, Renting would be hard to cashflow+ with a mis-priced entry point.

Is it unrealistic to have a max offer below $250k?