Commercial Mixed Use Property

[Konnor Lange]

Hey Everyone,

I'm completely new to commercial real estate investing but there's a deal that popped up near me that I believe has some potential for a double "hack." This building is ~$240,000 with two large units on the bottom. 1 is an office space that currently leased for ~$1,300/month. The other is vacant retail space. Both about 2,500 square feet. There is then about 4,000 sf of space on the top floor which would be developed into two apartments/lofts. I currently have a small business that is looking to open a satellite retail location which I could plug into the vacant space on the 1st floor. I would also be able to move into one of the developed apartments on the top floor. The owner of the building is a retired doctor who lives out of the state and is willing to do seller-financing. He would require a 10% down payment (~$24,000) @ 5.5% interest with a 5-7 year balloon. I will need to build out the two lofts and am awaiting an architect for plans to then start shopping for contractors. Does this seem like a decent deal? I want to know what the major steps are that I need to take from this point on. I'm definitely interested in the property. Would a LOI be necessary so that I can touch base with the city for potential abatements/grants and to ensure development would go smoothly? I will need more money for the renovation/build on the lofts so I will need another loan separate from the property itself.