Is this a potential deal?

[Account Closed]

Hi, 

I'm a web designer from Ireland. I'm fairly new to real estate, learning to evaluate deals. Thought I'd share some numbers from a commercial property with upstairs apartment. 

Property info: 

Downstairs: 48sqm Shop 
Upstairs:  2-bed apartment

Current rental income / year: 
11,160 (shop)
9,600  (apartment)

There was no asking price listed, so I used an estimate of 250k for mortgage rates, taxes, and other related costs. 

To qualify for a mortgage in Ireland as an investor needs 70% LTV. Interest rate Avg. 5.1%

The costs of mortgage, insurance, closing, agents, solicitor (attorney) , tax etc... adds up to approx 7% of the price

No repairs needed. 

So, to buy this property (using traditional methods) I would need:

92,500 in savings
(75,000 as down payment + 17.5  in expenses for buying) 

175,000 total mortgage loan

800 / month in mortgage payments (over 25 years) + expenses would leave: 

800/ month in cash flow

I later called the agent and found out the asking price was 300,000 and there was an offer of 290,000 on the table. 

What is the max you would offer on this deal? What other factors would you take into consideration? 

[Brent Coombs]

CoC of 3%? @Account Closed, I believe you now have your answer! Moving right along...