Opening Record Store

I’m unclear on what you are actually buying.

Rule of thumb is a business sale price is based on multiple of EBITA...

And often times the previous owner has ’a portion held’ back and a role to help the new owner(s) be successful.

In this case it seems you’re paying to take over a store front lease and ’buying’ a lead list since he’s already informed his customers of the web-business.

So if you are financially independent and looking for an opportunity to create business for your hobby in order to write-off some costs then I think you may have a good opportunity.

Retail is a challenging business and I would really view the 'store' as your personal listening room that can create some revenue.  Given the current state of the economy your demographics are limited in comparison to what they were 9 months ago.

Millercarbon  gets it and he was being polite about it .

twoch,
Polite about what? What are you referring to?

@fromunda --Based on your lack of response to many questions/advice here i'm gathering you either (a) don't like what you're hearing or (b) did not expect the response you're getting and are re-thinking this--hopefully the latter.  Are you unhappy with what you're currently doing?
Have you ever run a business before ?  Obviously not or you wouldn't be asking a bunch of knuckleheads like us for advice about it.  Notwithstanding, you've been getting some very good advice and 90% of it says "RUN" !  Sounds like your friend is escaping from Alcatraz and throwing you an anchor that will slowly drag you under as it was him.  If you're already rich you wouldn't be asking us and since you're not...stop watching High Fidelity and stop smoking  for a couple weeks and the light will break through...

Millercarbon is mostly correct.  Do not listen to anything nonoise utters.  In SoCal, there are several successful LP/CD retail stores.   They generally have an on-line presence, have both new and used stock and large collections, mostly in storage.  Some use special discount dates a few times annually to draw in customers.   One store gives away 100 LPs for a $20 in store purchase (they purchase 250,000 LPs annually and give away stock that is mostly unsaleable at $5 or more).  

For those who have steady income, can afford private schools and live in a good community, California is attractive still.   As a businessman, I do not invest in any new Calif. business which is subject to increasing regulations (apartment ownership-low yields of 4-4.5%, increasing costs and regulations, why they still like hot cakes I don't understand and I was a commercial real estate appraiser for 28+ years).   I only own single family rental homes in Calif. where I have the option to sell to owners if the rent is insecure (all 23 tenants have paid rent in 2020 due to below market rents and 24 hour repair service-many decade long tenancies).  Some friends and relatives have moved out of state due to business reasons.   

Before purchasing any business, one needs a business operation education.  In Calif., there are no simple brick and motor businesses that one can just open.  Many posters have provided you with the requirements and pitfalls of opening any business, let alone a retail record store.   I would do it as a hobby only but time is precious and I rather listen to music with a few friends then create the "High Fidelity" scenario.   My other investments include recession proof businesses out of state.   I extremely warn you against buying this record store.