Appraisal

I've got a scenario I'd like some input on.

I've got a guy who's selling an 8 unit (efficiencies and 1 br's; fully rented) building with a small semi-detached cafe/deli that he is currently running.

The rents are pulling in $4300/mo. He's asking $450,000 for the property. He paid in the $130s for it in 2007. He re-wired the whole property and renovated the 8 units.

I asked when was his last appraisal and he said he's never had it appraised. I asked where he came up with the 450 number. He said he was just sorta "guessing because of what the rents are bringing in". OK, dude!! (is what I thought!!)

My question is, can I ask him if he minds me getting an appraisal on the property before I move forward? I'd rather pay $300 for an appraisal than over pay by $150,000!!!

Any thoughts will be appreciated.

Thanks,
Melanie