Comping a mixed use commercial property

[Lee Garrett]

One of my marketing campaigns turned up an interesting mixed use commercial property. One of the direct mail pieces went to a seller that had a property that I was not really interested in. During our conversation another free and clear commercial property came up. The property has two store fronts with about 2000 sf of space attached to a 5 bedroom 3200 sf single family home. There does not appear to be any empty commercial space in the area and it is on a busy highway. Adjacent single family homes appear to have been converted into professional offices, there is a lawyer next door. The condition is not great, it looks like the current owner started a reno and ran out of cash. I have never done commercial property but there appears to be some potential here if I can get it at the right price (very cheap). I know what he paid (not much) and he seems very negotiable. I'm not sure how to value the property. If it was strictly residential it would be easy but since it is zoned commercial I'm having a hard time finding comps. As I said, I stumbled on this by accident and the owner is not currently trying to sell it but he seems to like my wife and I so he threw it out there. Any advice would be greatly appreciated.