How much should I offer?

[Craig Garrow]

Looking at a 19 unit self storage facility here in town. Asking price is $55,000 with gross potential rents of $13680/year. Property tax runs $2600/year and insurance runs about $600/year. Estimating snow removal at around $1500/year. I also happen to know that the property needs some excavation work done to improve the driveway, which I estimate will run $10,000. That being said, I am going to make an offer somewhere around $35,000 using seller financing. Does this seem too low?