Building for my business

[Mark Betche]

I currently rent about 4000 sf of shop space in a building my uncle owns. He is currently using appr. 8000 sf (4000 shop and 4000 wharehouse) and is looking to sell the building. This building is like 3 buildings in one, all the same size. His 4000 shop space has a second floor (currently unusable).

The building is in an lower income-business district type setting and has on two occations in the last 25 years had minor flooding. The city has a buyout of the area, in it's future planning.

The county accesses the property at 145,000 and my uncle has offered it to me at 120,000 and will owner finance. I can afford the payment, but at the same time, I should be able to lease his 8000 at a decent rent.

The property has not been appraised and will cost appr. 1500 to do so. The taxes are 1300 per year and the ins. about 900. I wish to put 5,000 down and finance 95,000 with an 20,000 balloon later contingent on sale of property in the fututre. The contingency would also be contingent apon the building selling for more than 145,000. An agent valued the building at appr. 180,000.

Any suggestions would be appreciated.