Is this worth it? 3 Unit Muli plus Bar

[Bernard Chouinard]

Wow - where do I start.  

Talking to a 68 yr old owner of a 3 unit (3br, 3br, 2br) unit plus bar.  Rents are $2775 - This is under market but this is what he is getting today.    The bar he runs and pulls in roughly $40K GROSS per year.   He's about $12K behind in water/sewer/taxes.  $97K mortgage w/payment at $810 and a commercial loan monthly payment of $110 about $16K left. 

He's motivated and willing to carry the note. The bar is throwing me off.  This is a run down hole int he wall.  I don't want to be a bar owner but might entertain the idea of renting it out to someone to make into a breakfast/lunch place but having a liquor license is gold and will transfer. 

Asking price is $280K which I think might be reasonable.  What would you do here. I was thinking, I give him $12K down payment which is me paying back taxes but $12K comes off total price.  Subject to his 2 loan payments plus extra cash to him each month as he would carry the note but looking to have some kind of income.  

This an old grumpy man.. lol  Seems to be very poor at paperwork so getting all numbers from him was a  little hard off this first call I had with him. 

I would LOVE to hear others on if you think this is worth it and how would you structure an offer.  I need 22 months to season off a personal mortgage issue that is holding me back from a  conventional loan so I would be looking at 24 months for him to hold this note at which I would refi through a conventional bank. 

Would love any input and help I can get as this is my first property.