Looking for suggestion on how I can do to a maximize return

[Calvin Liang]

Hi, Oakland investors. I am a newbie in the rental market. I started to look for a good investment a few months ago. I don't have a lot of cash, so my downpayment is most likely 5-10% for a property within 800k range. My family friend is willing to sell one of his property to me. 

It is a 5 units building with a commercial unit on the first floor, near San Antonio Park. It's also tenant occupied, the rent he collects is somewhere between 5-6k per month. He's asking for about 700-800k(we haven't talked abt all the details yet) 

What do you guys think it's a good price for this building and should I even try with so little downpayment? What should I look for to come up with a good plan to maximize my return?

I really want to come up with a win-win deal with him.

I do realize things like rent control law in Oakland, and with little cash like I do it's hard to do anything. I really want to get my feet wet on the rental market and learn more(My family friend also has another property right next to this one. 

I would greatly appreciate any advice from experienced investor like you and appreciate your time reading this.

[Arlen Chou]

@Calvin Liang, I agree with @Account Closed that the opening price is to high.  However, I would not walk away from a possible off market deal so easily.  At the very least this is a great learning opportunity for you.  Your friend opened a door for you to negotiate.  He could of just said no way...  

You don't have the pressure of time or of being out bid in this scenario.  I would suggest you go through the paces and do a real analysis on the property.  Ask knowledgeable guys like Saj to look over your findings.  Make sure that you at least buy who ever you have reviewing your findings a decent meal and drinks... hahaha

Look at it for what it is and put out a counter offer and make your first direct pitch. Get creative with the process, worst case your friend says no. But you get the experience of doing a live negotiation AND you can ask him why he turned you down and get some honest feedback.  If I was new to the game, I personally would not pass on a learning opportunity like this.  The best case is that you learn a ton of stuff and negotiate your friend down to a reasonable price/terms and you get the deal.

This is about as safe of a learning opportunity as there can be. I don't see a downside...