Any Thoughts on this potential commercial deal owner financed

[Tom J.]

I only have experience in residential real estate and need some thoughts on my situation. I have recently been looking for a warehouse style location to lease for a business that I am partnering with. I located a property today that the owner wants to sell and provide owner financing. It is one building that is divided into 3 separate store fronts. 2 of them are currently leased, but he was honest and said both business had already violated their leases and are now on month to month and he can give them 90 days to vacate if he chooses. I am not looking at the building to purchase to lease out but to purchase and to lease to the new business I am partnering on.

The property is worth what he wants and what I am willing to pay. ( actually prime location with 20 thousand+ vehicles pass daily) This is where I need help. I know you would need a lot more to put value on the property. I just want to know if this is a good deal on owner financing. To me it sounds great, but am I missing something on the finance terms?

Terms offered

$690,000 sale price
$40,000 down
will finance for 20 years
rate 5.45%