First commercial deal considering

[Benjamin Haberman]

This town has a population of 5,000 people. Its directly downtown. brand new 2 bed 1 bath on third floor/3 offices on 2nd story/3 offices on 1st story. Only 2 are occupied. Owners are looking to get rid of it and be done with it. They had great tenants in the past but the one tenant that was taking up a majority of the building went and bought a place close by. Since the place has been open. Considering developing a cowork space down stairs to get creative and draw some attention. Offices need central air, or do they? Is this necessary? Is it risky buying a commercial place like this if its not currently rented? I know how to market very well and believe with some creativity I can make this place a desired place. The brand new third story apartment will rent fast. Please keep in mind I am BRAND new to this. Im a  realtor in NJ but im trying to learn commercial real estate. Here are the numbers I have ran. Thoughts? Thanks in advance.

Office 1 downstairs	$1,000.00
Office 2 downstairs	$1,000.00
Office 3 Downstairs(occupied)	$900.00
Office 4 Upstairs (occupied)	$900.00
Office 5 Upstairs	$650.00
Office 6 Upstairs	$650.00
3rd story apartment 2 bed 1 bath	$1200.00
Potential Rental Income monthly	$6300.00
Potential Rental income Yearly	$75,600.00
General Vacancy-8%	-$6048.00
Repairs-5%	-$3780.00
Effective Rental Income	$65,772.00
Property taxes	-$6059.72
Sewer	-$2,000.00
FMI Insurance	-$1131.00
Total Expenses	$9,190.72
Net operating income	$56,581.28
Mortgage	-$12,948.12
Cash Flow per year before tax	$46633.16
Purchase Price	$268,000.00
Down payment (25%)	$67,000.00
Cash on Cash return. Yearly cash flow/down payment	70%
Cap Rate- NOI/Purchase price	21%
Loan amount	$201,000.00