100 Year Old 5-plex with Gas Boiler Heat? Hive mind help!

[David Stonner]

I have an offer in on my first deal: an elegant old mansion conversion and negotiations have stalled. Doesn't meet anywhere near 2% rule (nothing I have found in my area does), but it can cash flow $130/mo after actual recurring expenses and 100% financing, 20 year amortization commercial loan. 50% rule has it making $9/mo.

They listed at $219k, and came down to $189k with my offer coming up from $163k to $175k and things have stalled at a difference of $14k. 

They say they are firm, my banker says hold tight for a couple of weeks at my price due his concerns with Edwardian era heating technology.

200+ days on market. 6 year old roof, exterior is gorgeous, interior dated with kitchens and baths ranging from 1930s to 1980s. Oak flooring throughout with a generous dose of leaded glass and stained glass, everything single pane. Attracts good tenants who are young professionals.

Gross yearly rents: $28,000, yearly expenses $7,000. Landlord pays water/sewer, gas, trash and landscaping.

Should I counter at $180k even though they are "firm" at $189k? Should I wait? Should I walk? Slim pickings in my area, the best deals don't hit the MLS in this tight knit small community.

Thanks so much for your thoughts!