It may be a good deal. You need to analyze the data. If you are not adept at doing so - you need the help of a commercial RE Broker, CPA, Appraiser, etc. to help review and analyze the info you obtain. You might want to have the property inspected by a professional licensed inspection company to know the physical conditions that you may not be privy to. Without analyzing the numbers - ie: income / expenses for the last 2 - 5 years, review of the leases and terms therein, inspection report, etc. you can't judge wether or not a 20% discount off of the assessed value is good or not. It may be but - there may be something that would indicate otherwise.You say he will put up the cash for downpayment so you will have to seek financing - contact a commercial lender / banker in your area and they can / will assist you in reviewing of the numbers and will likely require an appraisal to see if the property will support the price and all the numbers that go with it.
Jan 5, 2012