Rent Controlled 4-plex in Berkeley

[Daniel Lorence]

Hello, I've got a pre-market deal in Berkeley that I'm trying to crunch the numbers on to give the real estate agent an offer. It's a four plex that has 3 unit's rented out getting about $1400 rent per unit. My friend is in one of the units and is planning to give me his unit if I buy the property, so I'd have 2 unit's and probably live in one and rent the other out. (all are 1br units, market rate about 2k/each)

I talked to the real estate agent and he said he's trying to get between 900k-1.2M, which I think is absurd given the rent controlled units and that the building isn't in the best shape. I know the landlord and I think he might give me a good deal. I'm trying to figure what is a reasonable offer price for him. See my spreadsheet below. I'm wondering if $769k is too low or reasonable.

Any Advice is appreciated

Thanks