Advice on my 1st investment property

[Manny C.]

My situation. I am evaluating a property that I am considering purchasing as an my first investment property. It is a house that has a one (1) 2 bed/ 2 bath downstairs & two (2) 1 bedroom/1 bathroom rent ready apartments upstairs. In addition, the downstairs is set up to easily convert it into two (2) 1 bedroom/1 bathroom apartments.

The asking price was $125k. In 2004 the owner purchased it for $75k. After running some rough numbers, the cash flow on the property (if I rented out the 2 upstairs apartments and I moved downstairs) was attractive enough to offer $100k. After a couple weeks of negotiation the owner accepted $110k.

#1. The last time the property was assessed (2012) it came in at $65,080. So am I paying too much @ $110k?
#2. My challenge is that this property is so unique that I am having a difficult time finding anything like this property to compare it to.
#3. Also after talking to Tax Assessors office they mentioned that since property taxes are partially determined by the sale price of the property I figured out that @$110k the taxes could potentially increase by $1,000. This changes the the cash flow scenario significantly and as a result doesn't make it as attractive to me.

I am not in love with this property as a potential residence for me. I am solely looking at this as an investment opportunity.

Thoughts? Suggestions? Questions?