Possible Deal Residential/Commercial split use building... need some advice

[Connor Smith]

Found a possible deal but need some advice from some more experienced investors. The owner has owned this house and the business in it for the last 50 years and is looking to get out. The property is in a B- area

Asking price is $180K.  The building has 3 - 2bed/1bath apartments that are fully renovated and are being partially covered by Section 8. Gross rents for the apartments are $17,000/year.

Downstairs has an Italian deli business which the owner owns and runs. Says he would like to run it for a few more years before stepping away completely. Because he owns the business I do not have an estimate for what rent for the storefront should be. Based on some listing on Craigslist I'm figuring around 700ish. I am pretty unfamiliar with commercial property.

He is open to owner financing and I need to figure out what kind of deal would make sense. He said he would not like to do more than a 10 year loan.

What kind of offers would you make on this?