Help! Purchasing a Multi-Unit Property (Duplex)

[Jay Peterson]

Hi!  I'm a newbie to multi-unit investing. I'm looking to make an offer on a duplex in northern Va. According to the tax records, the land is valued at $260k and the building is valued at $1k. While the building needs some repairs, it appears to be worth than $1k.  The owner is asking $270k purchase price, $1300/mo (includes 6% interest) payments, and is willing to owner finance for 3 years with 20% down. Both units are vacant as the owner hasn't done anything with the units for whatever reasons. Top unit is a one bedroom unit and is ready to rent. It could be rented for $700-850 a month. The lower unit needs work (about $12-15k) but can be converted to a 3-bedroom unit. It could be rented for $1100 a month. Can someone help me understand the land value vs property value? Would it make sense to make an offer?