Value of a distressed property

[Ayyoub Ajmi]

Hello.

I'm actively looking for a commercial property. I want to use 50% for my own business and rent the rest. I found a good property in the area I want and the type of building I want. it is vacant and in really bad shape. I checked the 311 reports and there are tons of citations and neighbors complaining about it. I was able to locate the owners and I'm communicating with them.

I would like to put an offer but I have no idea how much. Similar properties in the same area within a mile or two are on the market for 225K to 250k. The first one is a warehouse/office in great shape. A second one has three storefronts, two of them are leased.

The owners value their property at 250k. I think once renovation and up to code, it should be worth even more than that. but right now, it will need tons of work and money.

I have learned a lot from this forum and I'm hoping that you can educate me more on this aspect.