5 unit townhouse deal. Looking for opinions on it.

[Murdock Smith]

Hello all. This potential deal came about last week. I ran into an old friend of my parents who was back in town to put some of his properties up for sale. He's retired and lives out of Nova Scotia. He has a 5 unit townhouse in the better part of our city (Sydney) Each unit is two story with 3bedrooms upstairs and a full basement. Separate water, power and furnaces. It was built in 63 and he's owned it since 69. The furnace, oil tanks and windows were all done about 10 years ago. The tenants pay all utilities except water. He figured taxes were about 4K a year and insurance was 3500. He's told his accountant to give me all access to his info on the property. As for the tenants. There are four units rented, the tenants have been there for 35 years, 10 years, 7 years and 4 years. They pay on average 750 per month. He left the fifth unit empty as he was hoping to sell the building and was using it to show. It should rent for 800. So here's the financial details. He had it on the market for 460k, accepted an offer for 382k which fell though due to financing. He told me today he would sell to me for 360k. He has a commercial appraiser that he would get to look at it. He figures it would appraise at 400k. He also had it brought up to his insurance companies standards. I wanted to get some people thoughts on this property. Thanks for reading. Murdock