Pricing a property based off rent income

[Steve Laramie]

Quick question for some more experienced investors.  I am currently in the process of trying to break into single family rentals in an up and coming city.  The property I am interested in making an offer on is located in one of the best areas in the city with a very high potential for rent income.  This property was purchased by the current owner  approximately 4 years ago for $110,000 and has since been earning a proven rental income of $3,200 per month.  The property was not a flip and no major renovations have been completed.  The owner is now listing the property for $285,000, which will be sold vacant after the current lease is up.

 I understand that property values in this area are challenging to compare, because there are very few neighborhoods in the city that are desirable, this being the most desirable one. Do you think that this is a rational listing price that I should entertain as a starting point for offers?  Or is this seller overreaching by evaluating the listing price of the home by its proven rental income?  For me, I am having issues stomaching such a high increase for a property that isn't even flipped, considering somebody who is not an investor might just want to buy this house and live in it? Bare in mind the property is turnkey and does not need any expected renovations.

Thanks