First time purchasing a commercial property - Looking for advice

[Bo Yang]

Hi.  I am the the process of acquiring a commercial property with a total of 12 units.  4 Retail, 8 residential and 8 storage units.  There is an additional building lot included as well.  

Purchase price: 745k

Monthly income: 7.5k (all retail/residential rent between 600-700 and storage 60) - all units currently rented.

Taxes: 5k/year

Insurance: 5k/year

Maintenance: 15k/year

As it sits right now, the numbers seem to work ok.  This is an older building (1950's) and will require more maintenance than normal.  

The property is in a small beach community and can be converted to VRBO.  Its about 3 blocks to beach and next to main street.  

Residential units:  Most of the units will need to be updated and furnished to convert to short term rental.  Looking at 5-10k a unit for budgeting.  I believe based on similar properties, the conversion cost can be recovered in the 1st year.  Roughly 15k/year income after costs.

Retail units:  Worried about the economy and not sure how the retail shops will continue.  I'm hoping to leave everything as is and just keep the existing tenants.  30k/year income total.

Storage units:I'm not too fond of the storage units.  They are ugly and do not generate that much money.  Also worried about any liability associated with them.  I think most likely, I will just honor the existing contracts and remove from property.  It is basically a large wooden shed.  10k to remove.

Open lot:  Looking to build a beach house.  Budgeting 400k including fully furnishing it via a construction loan.  It will be used for vacation rental.  I am expecting about 50k/year income after all costs.  

Additional info for calculation of vacation rental:  I have looked through VRBO/Airbnb and also talked with local vacation management companies and this seem to be realistic expectation.  

June/July/Aug - full weekly rate at 90% occupancy

Rest of year - 80% of weekly rate at 40% occupancy.