Mixed Use Property Due Diligence - Feedback Requested

[Teri Hollingsworth]

Hello BP Community:  

I would appreciate your help in evaluating a property for buy and hold potential.  Here is the background:

• Sales price $575,000, building square feet 1,719/land square feet 5,762
• Taxes are $3,204.07
• Property consist of commerical store front with attached rear residence and  detached 2 studio units. (2 buildings total)
• Permit history of the rear residence and detached studios are unknown and requires further research.
• County assessors office shows the property use type as commercial and buiding square feet at 1,113.
• Store front building was used as a bridal studio and owner lived in the attached residence. (she is now sick and needs to sell)
• Studios are being rented to family members who are paying well below market value.
• The property will be delivered vacant upon the final sale of the property.

I am looking for suggestions on how to: 1)  evaluate this property for cash flow potential; and  2) steps to take to conduct a thorough due diligence on this mixed use property.  I just want to make sure that I am not overlooking anything.  Thank you.