based on this its what ever you all agree to and are happy with.. as long as you get some cash and you record your DT or mortgage in first position and then have co bene's on the mort/dt / note then thats all you really need.. you all might want to talk to a decent CpA about this.

I can look back and question my decision to go with him based on a number of warning signs, but we know some of the same people and our trusted friend referred him to us.

Hi Elvin,Are you based in Toledo?

For extra formality, put it on a nice document with your letterhead.Re: Non-Binding Letter of Intent to Purchase Real Property Located at [Property Address]Dear [Recipient's Name]:This non-binding Letter of Intent ("LOI") is submitted by [Your Name] (the "Buyer") to [Recipient's Name] (the "Seller") with the intention of setting forth certain preliminary terms and conditions for the proposed acquisition of the real property located at [Property Address], inclusive of all improvements, appurtenances, and fixtures thereon (the "Property").Purchase PriceThe Buyer hereby proposes to purchase the Property for a total consideration of $[Amount] (the "Purchase Price"), which shall be subject to adjustment based on the results of the due diligence investigations and final negotiations.Earnest Money DepositContingent upon the execution of a definitive Purchase and Sale Agreement (the "PSA"), the Buyer shall deposit earnest money in the amount of $[Amount] (the "Earnest Money") into an escrow account designated by the mutual agreement of the parties.

By disclosing your intentions, you’re covering your bases and staying on the right side of the law.Professionalism: Presenting yourself as a professional wholesaler can actually work in your favor.

No one here is give you can accurate answer based on what you wrote.

I would also speak to your CPA on this and any tax ramifications that come into play along with the cost basis on the property. 

Can anyone give me some tips on the area and coming up with a number based on those factors?

This also doesn't factor in that you may have to reduce the rents of the existing tenants since they are paying based on certain circumstances (IE access to the garage or yard space). 

What are you basing that on out of curiosity?