Do these numbers make sense?

[Andrew S.]

A little help from folks would be appreciated. I have never done a commercial deal but I have an opportunity. I have a couple with an established business who wish to rent space but are unable to buy. They are willing to sign a 5 year lease with me if I have a building. I have found a 3,000 sq/ft stand alone building that was a former dance studio that would house their dance business perfectly. I have a contractor's estimate of $47,000 for complete rehab including interior/exterior and bringing into a nice state. It's in a "so so" neighborhood but it is certainly the "best and highest use" for the location and place, it will never fly as Class A office space due to location. The couple is able to spend $2,000 per month on the rent, maybe a bit more. I need to make an offer on this building offered at $115,000 before I can get an inspection (per the realtors I'm working with.) I would put conditions on this offer for HVAC/Roof/Electrical Panel..etc being in good order. I'm not sure what commercial lending rates are right now. I'm able to put $25,000 to $35,000 down, am not looking for huge appreciation in this neighborhood but some cash flow with appreciation. I'm in the process of finding out what the energy costs are. Taxes are at $7,800 right now. Any thoughts folks? I know I've given a nebulous question here. Thanks in advance.