Help me analyze this owner financed commercial deal
This is a property that more or less fell in my lap. I'm a wholesaler so I only know residential, but I have a probate lead that is a commercial building. It's mixed-use, with a retail, laundromat, two industrial shops, an apartment and a house (right behind) that are all on the same parcel. The portfolio also includes two rental houses next door.
It looks like the ARV of the the properties is around $300k (mostly based on assessor's valuations). It's in a low-income area, with long-term tenants. It currently nets $30k a year, with potentials toward $45k. The building needs a new roof in one section, and is generally run down but in decent shape, like most of the area.
The family is very motivated, and offered to do owner financing. I gave them a few options and here's what they countered with:
Commercial building and the residential properties
Purchase Price - $250,000
Down Payment: $50,000 - Cash
Balance of $200,000 - we will finance this at 4% amortized over a 30 year term with monthly payments of $955, Balloon payment in 5 years for the full balance owed.
I think she's willing to budget more, but does this deal have potential?
If it does, should I try to keep it myself, or should I partner or even wholesale it? As I said, I'm in unfamiliar territory, so any thoughts would be appreciated.