He will have to pay tax on the part that is FFE, Good will, or a non-compete. 

@Rommel Pascual I have never run into that.You could lookup who the actual owner of the previous property is in the public records and ask them.

Your LOI is non-binding and generally covers only the high level terms - price, earnest money, timing, contingencies, etc.

A lawyer can access public records , If and when you get sued , and you have no insurance and the judge awards the tenant $ 1.5 million dollars .

@John Vietmeyer seeing is how you admitted on a public forum that the place is empty, I wouldn't recommend putting a normal policy in place that requires the property to be occupied.Call around, 30 days seems pretty tight.

And in most instances you can't even apply for a conditional use permit or a variance to allow for a non-conforming use so the process to change uses requires the city code to be amended. 

But you will offer a non-round number.

Others only make 2x the rent but they have absolutely zero debt or expenses. 3x the rent is a "rule of thumb" and you should be able to deviate from it based on the whole picture.If you have a one-year lease, you can terminate at any time for non-payment of rent.

You may need a non conforming product which often carry less desirable terms due to the close proximity of the short sale. 

It appears both have a cover charge for non-members.