Purchase of mixed use property and existing tenant leases

[Becky Crocker]

We have an offer in on a mixed use property with one retail space, one residential apartment above and two office spaces. The four spaces are all rented. Upon receiving our offer, the current owner sent out new lease agreements to the existing tenants to protect them from our being able to increase rent after purchase. Three year terms to each of the commercial tenants, and a one year term to the residential tenant. As is, rents total about $2600/month and our PITI would equal about $1800/month. When I estimate building maintenance and other costs, I think we would loose approx. $200/month at current rent amounts. The property was attractive because current rent values are significantly under market value. I estimate market value rent to total around $3500/month. Should I back out of this deal? Am I bound by these lease agreements between current tenants and previous owner? In WA State. Thanks for your advise! This is our first commercial purchase.