Potential First-Time Investor

[Erik Meyerhoffer]

My wife is entering year two of a three-year lease for her business. The tenants next door have moved out, and a new tenant is being proposed that may significantly impact the success of my wife's business due to excessive noise. The property managers seem to be giving little regard to the adverse impacts her business would face. This situation has prompted us to consider buying our own space for her business so that we would have more control. Another part of our reasoning is that she is already currently paying $650/month in rent, so why not try and put those rent dollars to work more effectively. There is a property less than a mile from her current business. It is 2,900 sqft, about 900 of which is currently leased. My wife's space would probably occupy about 500-600sqft, leaving ~ 1,400 sqft to lease to a third tenant. Asking price is $395,000. Obviously, there are many details which I currently do not have, such as what the current tenant is paying, etc. Ultimately, wife could use the entire building space for a mental health co-operative. Any advice on whether we would be getting in way over our head with this as a first-time real estate investment/owner-occupied space? Also, just to add, it's in one of the most desirable zip codes in the city both for residential and commercial properties.