Mixing Airbnb/Long term rentals in the same building?

[Jeremy Bartlett]

I need a quick sounding board... a 5Plex just came across my desk and it seems to have potential, but there are a couple variables in there I haven't dealt with before that could make or break the deal...

Specs:

Purchase Price: $525,000

Operating Costs: ~$1550/mo after PITI

Total Monthly expenses: ~$5137

Unit breakdown:

   Unit 1: 4/2, 1270 sq/ft rented at $1500

   Unit 2: 2/1, 760 sq/ft rented at $925

   Unit 3: 3/1.5, 1300 sq/ft rented at $1350

   Unit 4: 2/1, 760 sq/ft rented at $925

   Unit 5: 4/2, 1276 sq/ft rented at $1400

All units have been renovated except for unit 3 - which I would make my residence to fix up while there. The numbers don't really work under this structure, but my thought was making both 2/1 units an Airbnb... Using $95 a night and assuming 50% vacancy that increases their income to ~$1450 a month each.  

First question, if I purchased it with a conventional loan and made it my primary residence, would I still be able to purchase it using only 5% down? Or is it considered a commercial property that would require 20-30%?

Second question, I would be living in it for 1-2 years and then will likely move and need a property manager. Typical charge is for 10% of rents - but if I am running an Airbnb out of 2 of the 5 units, do they collect payment for those units? Or, would I be able to limit their fees to my 3 long term units in that building?

Third, operating costs seem to be outrageous - utilities in 2017 cost them $20K! Gas payment is the big killer - averaging $800/mo that the owner pays. Water a close second at $560/mo. It has baseboard heating, but can anyone think of a cheap way I would be able to cut those expenses in half?

Fourth, does anybody have a rental right now that mixes Airbnb with long term tenants? What are your thoughts on how it is working? Do your tenants view it as a pro or a con?

Fifth, this building is currently owned by an LLC and it showed a $15,000 net gain for 2017, but when I ran the deal through the BP calculator it came up as a money pit, and I am skeptical about the monthly cash flow. Again, making the Airbnb work and raising rents it shows strong potential - but because of its high purchase price (normal for my area) the 5% for vacancy, 5% cap ex, 5% maintenance, and 10% management equate to $1500/mo which is really what I feel like is killing the deal. The two are contradictory, what is BP's take on the discrepancy? Does it sound like it may be worth investing in?