Good for you for keeping your wits about you when watching for the flags.

The closer the NOI/asking price is to my target, the less I have to negotiate.John D  I am recognized by the state of CA as an expert witness to testify on all aspects of real property valuations including cap rates. 

In the 40 min. that I was there with my agent we witnessed a drug deal going down in the property.

There are a number of ways around that in my state, such as hiring an expert witness to testify as to what your inspector informed you of.

My grandparents are in their late 80's, and never have I witnessed them upset with each other.

If you can, talk this investor into coming with you so he can answer questions and be a character witness for you, buy him lunch for doing so. every little bit you do to be prepared to talk to them, the better you look in their eyes.

I have been an agent and am formally trained in appraisal (my dad was an analyst, appraiser and professional witness after being an agent and broker for many years) so working with him by force for so long has left me analyzing everything that even looks vacant to determine the possibilities.  

I have personally witnessed multiple properties with good price/rent ratios go off the market in just a few days after listing, with multiple, above asking price offers to boot.You could also put some efforts into off market deals or search for properties where you can add value by rehabbing with a 203k loan or a property where current rents are under market rate.

@Don Johnston - I'm at my wit's end with Yahoo email.

Originally posted by @Charles Parrish:I would expect you would know the value of a CAP rate as it is related to negotiating a price for a commercial property.With all those votes on your comments, you must know something about this business.Yeah I was a commercial real estate appraiser and certified by the state of CA as an expert witness for commercial valuations.On this forum I mostly see people using cap rates incorrectly out of ignorance or to knowingly try to mislead novices into purchases of the properties they are selling.