Newbie Commercial Questions / Advice

[Tyler Todhunter]

Hey BP commercial community!  Novice investor here- Currently own home, 2 investment properties, have done some flips in the past.  I've got a wholesaler that occasionally sends opportunities my way- and he recently sent me a commercial property that caught my eye.  The details of his email are below:

3000 Sq Ft Commercial, 175K Purchase Price with Owner Financing, No Origination Fee's or PrepayBuyer Pays All Closing Cost40K Down8.99% 30yr Term 10 year Balloon

I followed up by confirming they were carrying the note and asking how the place is laid out.  Replied:

It's being sold as is and need some work. it's one storefront now and a second storefront that runs into the garage but it could be separated with a wall. Then it would be two storefronts and a garage. It's best if you walk through if you have some interest. I'll carry the note and I'll cut you a deal if you're interested.

I ran numbers, best I know how, and the market value at the local cap rate seems like it should be north of $350k.

Rental income	3000 ($1 - $1.25/sf per local property management, NNN)
Tax	55 (Tax records)
Insurance	80 (Estimate)
Vacancy	300 (10%)
Prop Mgt	300 (10%)
NOI	2265
Local CAP	7%
Value	388285.7

Am I missing any key components to my calculations?  Of course, I would need to know how much it would take to get it to marketable condition.  What other information should I be asking about?  What should I be cautious about?  With the price being half of what it could be, is that too good to be true or is this normal for a non-performing commercial asset?

Thank you for any input!