analyze this 4 unit deal

[Sam Lee]

Currently looking at a legal 4 unit in logan square in chicago. Seller is asking for $699k which is way off what the market would ask but the property brings in $66k/year in rental income with the opportunity to increase rent by adding in unit washer and dryer and expanding the unfinished basement and attic. The property looks turn key. Real estate taxes are $6000/yr. 

Using 50% rule the property is negative cash flowing at $278, the 1% rule puts the property valued at closer to $550k. But keep in mind this is a hot market and a very trendy area. The tenants would be tenants you would want to have, a lot of working professional types. What are bp's thoughts on this "deal". Also how would i not sound rude or offensive in trying to negotiate a more reasonable price?

Thanks!