Buying Out-of-State Multi-Family Property

[Ian Bautista]

Good morning BPers!

I currently live in the Los Angeles area and am looking to invest in multi-family properties out of state due to the high prices in LA. My best friend lives in Florida and we've decided to partner up and buy some properties out there. He mentioned our plan to one of his really good friends who happens to be a real estate investor himself (I've met him many times and seems like a stand-up guy) and his friend offered up a fourplex in his portfolio that he's looking to sell, but hasn't listed yet. He's says it's worth about $285K and rent is $2900/mo. Running the numbers gives us just over $500 in cash flow each month and a 10% CoC ROI.

Numbers look ok, but not great due to the price.  The problem I'm running into is coming up with a reasonable offer for the quad.  After looking at the tax assessor's website, I see that the owner bought the property in 2014 for $110K (although he did say he totally upgraded the place after buying it).  Also an investment company bought three quads in the same complex for $593K in July 2017.  

I'm wondering if the owner is basing the price on the current rent, because I can't really see any comps that justify a $285K price.  I'm hesitant to talk with a local realtor, because I don't want them contacting the owner and trying to get involved in this off-market deal.  Also, I need to be a little delicate in how I approach a lower price since my best friend and him are pretty close.  Any advice on how to come up with a good purchasing price and not blow up the deal?  Thanks in advance for the help!

-Ian