The plot is around 26000 sf, beachfront, great tourist locationThe build quality is high, and it survived the tsunami of 2004 intactThe place is fully staffed with a manager who's been there for 19 years, with no intention of leavingThe place is one of the few in the area that holds groups (the whole complex is rented out to groups of 12-23)It is currently earning 100k eur per annum with only 50% occupancy (the owner is older and does minimum to market - old website, airbnb, booking.com, homeaway, tripadvisor)The average occupancy of the area is 74% so there is a lot of room for revenue growthThe rates haven't been raised for 3 years and it is due for a 5% rental increaseThe reviews are stellar on all sites, with many repeat clientsThe venue is ideal for weddings, reunions, parties, bdays, etc, and the staff handle everything, including an on site chefWhen you stay there it's like having your own resort on the beach to yourselfOwner will act as consultant for up to 1 year for freeSo, he wants to sell to my husband and I, as his manager and he really like us and know we would keep the staff and concept the same.

@Ashley Crump My biggest mistake starting out was giving my contractors too much money up front.

I would say the biggest thing here is to know your market.

The biggest issue here is that the seller understands your opinion of the value (so give them a CMA), and if they choose to sell it for significantly more or less than that, its certainly their prerogative to do so.

We plan on doing some upgrades and project net short term rental revenue around 35-40k based on our experience in the market with another home we own.   

I use 2% for expenses, 2% for revenue, and 0% for property value.

I also like to factor in the impact of income tax from the revenue of the property (my accountant told me to factor in 26% - Ohio).

The biggest downside is that your return on investment will be lower due to the lack of leverage.

I've started researching real estate and I have so many questions, but the biggest one is: How on earth do I know the value of a property for sale?

My biggest hurtle at the moment is getting financing since I am self employed.