Your input please :64 unit mixed commercial for $250,000

[Lester Schmitt]

I have had a contract accepted on a 61 unit boarding house with 4 storefronts. Currently the rooms are 90% occupied on a month to month basis and 1 storefront is occupied. There are tenants in negotiation for two of the other storefronts.

I am just starting due diligence so I have income figures, but have not yet verified expenses.To be conservative, I am estimating expenses at 60% of GOI until I have better numbers.

Gross revenue=$188,50
with the current 10% vacancy, GOI=$170,000
NOI=$68,000
Debt service for a $250,000 loan at 7% for 20 years would be $23,260 annually.
So my cash flow before taxes would be $39,000.

There is much opportunity for raising rents and lowering expenses.

I found this through a realtor so I can't talk directly to the seller. Realtor says seller not willing to hold any financing.

However, the bank that holds the current mortgage is willing to finance 90% of the purchase price, + needed repairs with 10% down. They want someone local because they feel the out of town owner has mismanaged the property. I am told this is not a short sale, but it must be a distress sale since it is the bank that is driving this from the seller side.
The bank, since they know the property, will waive appraisal and building inspection. I know this sounds odd, but I have verified this with the commercial lending officer at the bank.

This all sounds good to me, but I would like the group's input.

I have one other hurdle. When I contracted to buy the property, the source for my down payment was going to be to borrow from my 403(b) or HELOC. Since then, my wife had decided that she doesn't want to sign to allow me to borrow form either and they are both jointly held.
So I could buy the property, but don't know where my down payment will come from.

Any suggestion on how I can make money out of this situation? Wholesale it? HML. Private money for downpayment?

Lester