The home was custom built in the mid 80's and is in terrific shape, but its now dated and will need a new kitchen, baths, and some walls removed to open up some of the space that buyers find more attract today.

I've long loved the construction side of my job as an interior designer and I've spent most of my career creating spaces to either make people feel immediately at home (hotels and restaurants) or where they WANT to be home (multifamily & builder models).  

There are so many books discussing general knowledge on commercial leasing but it's somehow limited on actual owners/brokers' experiences with the industry whether it's for retail or office space. 

The price seems expensive to me for such a small space.

I go there for a conference every year and there has been a noticeable year over year improvement with more happening and vacant commercial space filling up.

Building constructed in 1980Present loan value appx $77k on a 15 yr note with 3.375% interestP&I pmt is appx $602NOI 2014 was $11489NOI 2013 was $5142      (spent around $4k on updates/remodeling)Appx $27k by my calculations of capital improvements needed in the next 5-10 years to increase the value of the property, properly maintain it, and keep it functionally up to date in order to attract higher quality tenants (located in a b grade area) (I'd rather have more invested to have higher quality tenants - have my own reasons for this line of thinking - willing to sacrifice a bit of profit to have good people)- Redo Kitchens- replace doors and all base trim/casing (more for my taste and would help the place rent out even quicker)- 2 escape windows installed for basement bedrooms- Concrete work needed on patios and near front of the house -- need to be done in the next yearProperty based on comps in the immediate area and a tight supply of decent duplexes here is $175-210k or so.  

Hopefully someone in that space can shine some more light on it.

I deal in the 10 unit and under space typically.Like @Joel Owens said though, in any market you have to have the infrastructure and know what you are looking for enough to be able to pounce on a deal immediately when one becomes available in your sweet spot.

I feel guilty saying it as I know many would kill to be in my position but I feel an awfully lot like Peter Gibbons in Office Space.

California is likely to continue to appreciate due to the limited space in the coastal areas, however, I don't think rents will keep pace.I'm a big advocate of investing where you live, but its tough for California right now.