Advise on first commercial purchase

[Ryan S.]

I just sold my old personal residence and have a capital gain of 3mm. Instead of paying uncle sam, I decided it would be best to 1031 it into a commercial building. I found a local building that was built in the 70s, on a 1 acre lot, located on the busiest street where I live, has a corporate tenant, and the building it located on a corner lot that has a traffic light. The lease expires in 5 years and the tenant has two 5 year options to renew. The rent increases 6% every 3 years. I would be buying the building with  cap rate of 5%. I feel as if I am paying a big number for this building, but I don't have many option of properties available locally. I like the fact I drive by the building frequently. Is this a good or bad idea. I will be financing 60% of the property. Anything I should be aware of or questions I should be asking.  Thanks in advance. 

[Steven Foster Wilson]

Quote from @Ryan S.:

I just sold my old personal residence and have a capital gain of 3mm. Instead of paying uncle sam, I decided it would be best to 1031 it into a commercial building. I found a local building that was built in the 70s, on a 1 acre lot, located on the busiest street where I live, has a corporate tenant, and the building it located on a corner lot that has a traffic light. The lease expires in 5 years and the tenant has two 5 year options to renew. The rent increases 6% every 3 years. I would be buying the building with  cap rate of 5%. I feel as if I am paying a big number for this building, but I don't have many option of properties available locally. I like the fact I drive by the building frequently. Is this a good or bad idea. I will be financing 60% of the property. Anything I should be aware of or questions I should be asking.  Thanks in advance. 

 Have you considered out of state investing? Here in Columbus and Cincinatti, the price to rent ratio makes for great investments. Not to mention our appreciation has been 8% higher then the US national average, because of the high demand for affordable housing.