Please help with potential first deal

[Quinten Jones]

Hello everyone,

I have connected with a friend of a friend who is an older gentleman who owns Real Estate pretty much all over Nevada County, CA. After explaining to my friend that I am getting started in the Wholesaling business, she was able to get this gentleman to call me.

He wants to sell a property that contains 4 Rental Units that sits on a commercial lot in a very convenient location in Grass Valley, CA. The rental units (small houses) need some rehab, but not a whole lot - Mostly Cosmetic and some curb appeal. He is asking $450,000 for the property. He mainly wants to get out from beneath it because he is older and does not want to be a landlord anymore.

My question is: How should I go about in analyzing his asking price? Realizing that the property is zoned for commercial, there is potential for future development. Researching rent in Grass Valley, I believe each unit could be rented out for $725.00 yielding a gross monthly profit of $2,900.00 before expenses. Any help would be appreciated. Thank you.