Commercial property development

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I have found a commercial REO property that has an existing SFR that has been converted to a retail/office space and a basement apartment.

This property is located on a busy downtown street it has a 1,000 sf basement apartment that with some renovation will make a nice 2/2 apartment. At street level there is a 1200 sf retail office space and a separate garage. The retail space is ugly but the lay out is good and it could easily be setup with 4 offices with a nice waiting room. It is my intention to convert the existing garage into my business office.

There are separate meters for the existing retail/office space and the basement apartment.

In my market the 2/2 apartment should rent easily for $800/mo currently have no tenant. The retail/office space I have been doing some research on. It seems that I might be able to get 1,000-1,200/mo for the space. Zoning allows for medical/dental, construction, and light retail. Paring is the biggest limitation at this time.

I can purchase the place all cash for probably 150-160K. My plan is to do make some renovations now, but to eventually tear down the structures in approx 5 years when it is fairly likely that a 3 story mixed use bldg and parking could be built. It is hard to say how long I may need to hold the property before developing it, but the property will have good cash flow and I expect to have decent exposure for my business at this location that will increase my business prospects as well.

I would love to get comments from developers, flippers and others far more experienced in this than me. This would be my first retail/office space and I would like some advice.