Office Building comps/analysis

[Michael Standish]

I’m evaluating a commercial deal in my neighborhood and need to insight into analyzing the deal and finding comps.

Summary:

Off-Market Deal - 4 unit office space

Each unit approx 825sqft

Currently 75% occupied

Asking price $95k

Current total rents $950/mo

Bills covered by the landlord ~$150/mo

Property tax ~$2000/yr

Located in a more residential area, about 1 mile from a main strip. There is a concrete contractor in the building next door and a dental office across the street. Current tenants are a message therapist, psychologist, and web developer. All tenants are on short term leases. The seller also offered to finance the deal, if I am interested.

My main question is how to I back into a reasonable purchase price? The property seems to cashflow as-is but I’m concerned with the short term leases and none of the tenants have been there for more than 1.5yrs.