Master lease with option

[Alix Cassagnol]

Need advice. I am in the process of a master lease option, negotiating still. It is a 6800 mixed use building in Nassau County, New York taxes 55k.

6000 sq ft of retail that can be subdivided into 4 units with a 2 bedroom apartment above. The potential is $2400 for the apartment and $9000 for the retail. No separate utilities. Building is vacant and needs 50k of work. Seller originally wanted 1.1 million. He has agreed so far to a 3 yr lease with 3 option prices 900k for now or 1million by next year or 1.1 in two years and 1.2 in three years. I would be responsible for taxes and utilities that comes to 6500 a month. He has a 400k mortgage so I would offer 2k a month to him. That is a total of 8500 a month. He is willing to give me 3 to 4 months to fix and get tenants. I was thinking of negotiating the cost to repair to be deducted from the option price.

That leaves $2900 take 500 for utilities and repairs $2400 left . Does this deal make sense I am open to suggestions.