Buy a negative cash flow?

[Ryan K.]

There is a small (625 sf) office space offered for sale for super cheap ($25k). So cheap, I could pay cash! I spoke with the Realtor and found the reasons:

1) interior office, no windows, not desireable

2) $6000/yr CAM (includes HVAC, gas, electric, maintenance of bathrooms, hallways, elevators, underground parking ["allotted," not deeded, parking space]).

3) Adding CAM, taxes and insurance, it would cost $700/mo to own (not including debt service). That's $13.44/sf.

4) Glut of office space. A local business moved their corporate HQ, tons of vacancy. Interior office in fair condition is renting for $5-15/sf now, call it $10.

The purchase price is "soft," the owner probably just wants out from the ownership expenses. One reason I'm interested is the overall strength in this resort area (Beaver Creek/Vail) and specifically the growth projections in the town. The last sale in 2006 was for $140k. One reason I'm not interested, buying a negative cash flow is moronic.

Does anyone have experience getting CAM fees lowered?

Would anyone buy a negative cash flow on anticipation of appreciation (both rent and future resale value)?