Potential Kansas City Commercial and Residential Rental Property

[Aaron Natalie]

Hi All!

We are in discussions on our first potential investment property. The building is currently a combined residential and commercial rental property. Our plan is to have my wife's company in the commercial space and rent out the 3 residential units. 2 of the units are currently occupied for 1-1.5 years left on the contracts. The larger unit 3rd unit is not currently occupied. The residential units are in decent shape could use very light remodel/cosmetic work.

The building is currently off market. We get the feeling that the current owner does not NEED to sell it so we are treading lightly. He has offered to seller finance at 8% with 30% down. We have not brought in a real estate agent as we feel it may cause the deal to fall through. We have reached out to our bank that we would use but are afraid that it may cause the deal to fall through as well. He has mentioned he doesn't like banks. We would plan to get an inspection post closing so we at least have a to-do list. Inspection would usually be required by me but (again) we feel it may cause the deal to not go through. 

The financials look good on it based on the calculators on BiggerPockets. They look way better at market interest rates and typical bank lending down payments. 

General question(s) - Are we being too lenient with him? 

Should we still get our agent involved? He currently does not have one. Can we get paperwork from the local title company if needed?

Should we request the tenet deposits as a part of the deal?

We are going to request the tenet agreements tomorrow. 

Are there other things we should be asking? HVACs look good, electrical looked up to code...