is this just a shiny object?

[Aneury Evangelista]

Hi Everyone,

Allow me to first start of by saying this is my very first post, and I am super excited to be here! (also hoping I a posting in the right section). I recently discovered BiggerPockets a few days ago, and since have been going on a frenzy listening to podcast and stalking the blogs. This is such a great community!

I am a brand new investor, and I recently came upon a deal (or shiny object, not sure yet) that I've been trying to wrap by head around. A family friend is relocating/retiring, and is offloading a lot of his properties. In speaking to him about his intentions he mentioned that he is tired of being a landlord, and that he has been at it too long. He is very interested in selling, and mentioned he would work with us to make it happen. That said, I am not sure if this is a good deal or not, and I would love to get some input from you guys.

Here is the deal:

Asking price: $2,300,000 (in talking to him we can come to a deal at $2M)

Mix use property (6/8 units already rented with 7 year leases on the long end, 1 unit has a 3 year lease left). All units located on the same lot (corner to corner) accross from the town's main shopping center, and a newly build Wawa.

-1 house

-1 Car detailing center

-1 Mix Martial Arts Studio

-1 Beauty Salon

-1 General Contractor

-2.5 Offices (2 offices not rented)

-1 large storage space (can be potentially turned into more offices or something else)

All units are triple net leases, and pay for the first $500 of any maintenance. Property was completely gutted and renovated within the last 5 years.

PGI: $193,800 (4% yearly increases built into all leases) yearly

NOI: $137,970 yearly

OPEX: $46,140 yearly

I included some excel calculations below that breaks all this out. Seller is willing to seller finance just over $1M leaving me to try and come up with the balance of the deal. Base on this information and the calculations below, would you consider this to be a good deal? My thoughts are that I would be able to add to the NOI by renting out the remaining office space, and potentially doing something with the storage space. Any advice/input would be greatly appreciated!