Office building offering seller financing

[Chris Connery]

Came across an office building in my area. The owner and main occupier of 70% of the building is a large tax firm. They had plans to move out of the building a year ago when it was originally put on the market, since then their situation has changed and they plan to stay. They would take it off of the market but are open to offers. Given their profession being Taxes, they obviously see the advantages of seller financing and are more than open to it. According to the broker they would be willing to finance the property for 3 years at 25/yr amortization at 5%. Listing price is $535,000. They will also sign a 5 year lease to alleviate the concerns of any buyer as to the longevity of the largest tenant. The biggest question is down payment. I think I could get a full price offer accepted at a 10% down payment with owner financing. I have a good relationship with the bank that would refinance me out of it. The owner/tenant would agree to a 5 year lease (to help me refi out) at $21.00 sq ft and want to keep their entire 3200 sq ft space $67,000/yr. there are two other tenants that each have 700 sq ft at $21.00/sq ft, 14,700 each. They are long term and plan to stay.

Gross income is $96,000

NOI is $48000

Financing cost to seller annual $33600

I did not want to go through the entire P&L list but Vacancies have been accounted for, as well as cap ex, advertising everything.

This is an office building on a busy street in a good location. Built in 1978 and needs no work. It could be suited to 11 tenants but is fully occupied with only 3 now. The seller financing is what is keeping my interest the most. Expecting 60k out of pocket.

Any thoughts?