Just to plug a wild number in for the foundation/rot issue (don't use this for a decision, I am simply plugging something in for the sake of plugging something in), if you add another $ 12,000 in for the new found repairs, your "purchase" price is now 138,500, throw on a couple thousand more for closing costs (again, napkin analysis numbers) and you are actually paying a little over 140K for this property.If you take that into consideration, you are down closer to an 8 cap.

That includes (but is not limited to) NO cutips, paper towels, sanitary napkins/tampons, flushable wipes, diapers, paper towels, fish, or smoking materials/ cigarette butts, or badages.

@Josh Martin Zillow is at best good for back of napkin directional roundabout values.

It’s how I size up props quickly on napkins and it’s my language.

Your back of napkin math is a little off in my opinion but that’s ok - we are all here to learn!

You can write the terms on a napkin.

The more areas you check, the more informed you will be and the better information you will have to move forward with.Additionally, another concern would be the depth of the existing sanitary sewer line(assuming it is below the slab) as sometimes these are 4-6" down, but other times they are only 1" below the slab.

Chances are if you can't run a quick analysis on a napkin, you need to learn more on where you want to invest and how much can you invest.  

Though, if I ever own a restaurant, I don't think I would charge for napkins :). 

I can write an acceptable deal on a napkin if all parties agree.