What 2 look 4 in buying an old mat thats not open?

[pheedog]

Can anyone help me with what to look for, pay and negotiate when buying a mat the landlord owns and that's not currently open? Apparently it's a 2800sqft mat that the landlord has owned for a long time and recently renovated with new machines. He is willing to sell for $160k, and lease for $2800/month for 5 yrs w/option(it's all negotiable, so I wanted opinions on terms I should get etc). I basically will be starting a new business, and a source claims that he doesn't have accurate returns because he's definitely skimming $. What do you guys think? I know I should ask for water bills etc, a longer term lease with cap, lower monthly rent, what else? How's the price determined?
Thanks,
Phil

[barryota]

Definately ask for water bills and any sales tax information. It will help paint a more accurate picture.

Also, is he staffing the mat with his own family or is it with hired help? Usually labor is one of the highest expenses you'll have, next to rent and utilities.

Good Luck!