Multi-family Mixed Use Building Analysis

[Gary White]

I've been listening to podcasts and reading posts for over a year now.  I figured eventually I would buy a single family and then another maybe a few more and see how things go.  I recently found a mixed use building in a small town for sale by owner.  First floor is renovated already and has tenants, both commercial and residential, floors 2 and 3 are gutted and need renovated into apartments.  New roof, new external brick I am told.  I have yet to see the property and am working on a walkthrough and meeting with the current owner.

Here's the rub.  I never even considered purchasing a muti-family mixed use building for my first deal, because I have not been considering it, I have not really listened/read much on evaluating this type of property.  Some would say then that I should walk away... NOT... if the numbers work out I don't see a reason not to buy it, other than fear.  Ok, maybe inexperience and some other things but sometimes you just have to jump in, rip off the band aid...pick your metaphor.

I would appreciate any advice on what information I need to gather to make a good decision on if the property is a good deal or not.  I know this is somewhat vauge and for that I apologize.

Please help.