I feel like this is a no brainer... but maybe i have no brain

[Logan Reinard]

I own a coffee shop in the downtown area of a city near by to where I live.  The landlord just recently approached me about potentially buying the building for $92K.  I know that he purchased it for $42K about 3 years ago.  Since then, we started our coffee shop and invested over $100k into the building with new flooring, electrical, plumbing, commercial kitchen, etc.  

Our Rent is really cheap @ $650/mo (contracted for another 4 years)

The mortgage on a $92K building in this area would be less than $650 on a 30 fixed.

The other interesting part of this deal is that the building has an upstairs that used to be a living space.  Long story short, a jewlery store was in the location before us and the insurance company forced them to remove the tenants, staircase, eletrcial, etc, but it's 2500 sq ft that could probably hold 3 apartments.  Ran down apartments in this area are bringing in $650-$750/mo.  It may be a big endeavor, but the pay out could be amazing.  I'm not entirely sure, but i'd assume it would cost around $100k to turn the upstairs area into living space with up to date components.  

Do you see any holes in this idea?  My initial thought, is that the area is growing and we are already paying rent.  The risks are that the building is old, maybe there are things I just don't know.  What would you do?

Hope to get some input on this.  Thank you for looking!

Logan