Medical suite...14% cap rate?

[Mike Webb]

Hi BP'ers! Looking for some advice about a pocket listing sent to me the other day. I don't have much experience with the Commercial REI realm and would appreciate any advice. This is a 3,000sqft medical facility that would be classified as Class A office space, I believe. Here our the numbers forwarded to me from the Property Manager. The purchase price would be under 300k and they will entertain seller financing. 52 months of rent remaining (based on 12/1/14 Settlement date) $195,000 52 months of NNN costs @ $2/SF (estimate) - $26,000 Net cash flow - $169,000 over 56 months - 63% of the purchase price repaid over the next 52 months Buyer's cost basis after the lease ends - $99,900 of purchase price not repaid - $33/SF 3,019 SF fully built out medical suite specifically set up for dialysis practice Average monthly rent of $3,750/month Average monthly NNN costs - $500/month Average net cash flow - $3,250/month Cap Rate - 14% on average net cash flow Please let me know what you all think or what your next move would be with the seller. Thanks!