So a cold caller actually followed through with a LOI...
I had posted last month that one of my commercial buildings has been generating several cold calls per month from interested parties.  I finally got fed up and shot out a price of $350k to the latest caller.

Now, this is a property that appraised for $70k when we purchased it 8 years ago and has been lightly remodeled. 1950s block building with shingle roof.  Definitely not class A space, but it's not a dump either.  However it's over 13k sf and is generating about $2200/mo in rent from 3 tenants (one of my other companies occupies the bulk of the space at a reduced rate and there's another unused portion of the building).

Well...after a couple calls, that buyer sent an LOI for $305k. They want 60 days for DD and 60 days to close. $2000 refundable deposit.   I would be very surprised if they actually followed through after inspections, etc. On the other hand, the neighborhood has been slowly growing and there has been an upswing in development in the area lately.

This would be a great return on this investment, and would allow us to move forward on a couple other properties that have been on our list.  However it would be a huge undertaking to move all our inventory to another building, etc.  (my wife thinks it's impossible LOL).  I also feel some obligation to my tenants who will be pretty concerned about changes to the property. Both have 1 year leases that end 9/2023.

I feel like there should be some remuneration if they back out - after all I'm going to have to spend my time working on an exit strategy, accommodating their inspectors and requests, legal fees, etc.

Any thoughts or advice on whether I should proceed?

EDIT to add...I checked out the company and they're real, but not a well known entity. 
[{"id": "ist5tuy", "text": "Their inspections are your inspections so no harm there.\nYou should have an exit strategy in mind if you\u2019re going to throw out a number so have that ready for days like today when someone is ready to buy you out. \nFormer tenants have a year to figure out their next move, whether they stay or go, so no problem of yours.\nIf you\u2019re concerned with them bailing, jump up that refundable deposit (which does seem light) that way you\u2019re compensated should they walk after 60 day DD window. \nYou\u2019ll have 60 days to move out after DD which should be plenty of time, if you make a plan.\n\nSounds like a good opportunity, good luck!", "replies": [], "depth": 1}, {"id": "isu0row", "text": "Worth asking for track record in purchasing similar properties and also a proof of fund to show they are good on the money. Definitely worth sizing up that deposit. Under which condition would it turn to non-refundable?", "replies": [], "depth": 1}, {"id": "isu0xzv", "text": "Push back on their deposit since that is less than 1.00%. Considering all of the work you will have to go through I would push for at least a 15% deposit- you also can make this a nonrefundable deposit since most of your work will be a sunk cost.", "replies": [{"id": "isw3tr9", "text": "15%??? sorry, that\u2019s 5x industry standard", "replies": [], "depth": 2}], "depth": 1}, {"id": "isu2ho1", "text": "Just out of curiousity, did you have any hesitation with accepting this LOI as it isn't binding at all? Was curious as I've been wanting to start using LOI's more", "replies": [{"id": "isvu7z5", "text": "I\u2019m definitely hesitant for several reasons. Mainly because there\u2019s no penalty or skin in the game if they back out. Also I\u2019d expect them to try to renegotiate lower after they do DD. \n\nI\u2019m considering countering with more favorable terms but this doesn\u2019t feel like it has a high degree for success\n\nI will say though, the LOI definitely got my attention vs. other sellers who just send texts and don\u2019t bother to follow up.", "replies": [{"id": "isw3ls6", "text": "That is great to know. Thank you so much!", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "isu4wee", "text": "Make it a $5000 non-refundable deposit. \n\nAlso, why won't the old leases be honored? Leases run with the property.", "replies": [{"id": "isvd9ub", "text": "I think just non renewal or rate increases. OP also shouldn\u2019t sign sweetheart leases now", "replies": [], "depth": 2}], "depth": 1}, {"id": "isvjhwu", "text": "2%-3% should be the EMD and this should go hard after the DD period. I would counter with a 30-40 day DD and 30-45 days to close with additional earnest money of $500 per day if extensions are.given to close. \n\nIf they are capable of buying the property then they are capable of closing in 90 days or less. \n\nA Phase 1 environmental review may be needed and handled during the DD period by the buyer, but make sure that if a Phase 2 is needed that the sale of the property is not contingent on this result. I would be ok with giving them some extra time for a Phase 2 study outside of the DD timeline, but not as a contingency of sale.", "replies": [{"id": "isxyskj", "text": "A+ guidance. Get a written offer from them with the details that cashflow2freedom noted, also in writing, give yourself 60 days after COE to move your inventory.", "replies": [], "depth": 2}], "depth": 1}, {"id": "isw4c5b", "text": "I\u2019d get proof of funds. are they getting a loan? 45 day closing is long as heck imo. \n\ndepends on the area, but an offer like that sounds crazy unless ur $70k was some sort of steal or ur a decent value add guy. Hard to say if this is legit or not without knowing what market. \n\n2k/mo gross? Net? $300k I guess makes sense around a 7/8% cap. Again, area? \n \nLots of things here that sound a bit too good to be true. But hey, idk all the details so I could be off. Cross your t\u2019s and dot your i\u2019s", "replies": [], "depth": 1}, {"id": "isx6pyf", "text": "&gt; I finally got fed up and shot out a price of $350k to the latest caller.\n\nWhat's your asking price ?", "replies": [{"id": "isy4ruf", "text": "The property isn't listed but we've been getting 2-3 cold calls per month on it.  I would sell for a high number like this, but it seems too good to be true.\n\nOddly, we own abetter building just 5 minutes away and have had zero contacts about it.", "replies": [], "depth": 2}], "depth": 1}, {"id": "isxafc2", "text": "They know something you don\u2019t about what\u2019s happening in the area.", "replies": [{"id": "isy5740", "text": "That's very possible, but looking at this company's site, I think they're probably just opportunists or this property made it onto someone's algorithm.  \n\nThere have been rumors about freeway expansions and a couple box stores coming to the area, but that's been going on for years.   However I've been seeing more development out this way, and the road we're on has 30,000 DTC.", "replies": [], "depth": 2}], "depth": 1}, {"id": "isxby0b", "text": "Due diligence will be a pain in the rear, could be mountains of papers. You need some non-refundable deposits or go-hard days to give these buyers deadlines.", "replies": [], "depth": 1}, {"id": "isy60r1", "text": "Update- I'm going to counter with a slightly higher price, larger non-refundable deposit and shorter closing terms.  If they want it, they want it...If not I'm more than happy to keep it. Thanks for your advice everyone!", "replies": [{"id": "iuw4u5q", "text": "how'd it go?", "replies": [{"id": "iuw985o", "text": "Thanks for asking! We went back and forth for a few days and they agreed to 325k, larger deposit and shorter closing, but they wouldn\u2019t budge on the refundable deposit. I said, \u201cI need you to have at least some skin in the game, if not it tells me you don\u2019t think this deal has a high likelihood of success\u201d\n\nOne guy let it slip that they wanted to redevelop the property so there may have been a third part involved too", "replies": [{"id": "iuwaxau", "text": "Thanks for the update. It's interesting to read about these different experiences. :-)", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}]