The person subleasing usually is a person that would not be able to qualify for the unit through the normal process.

Minimum 50 units.

Winter months are definitely the most difficult months to occupy units.

The storefront and workshop/studio spaces could be rented right away, but two of the three residential units require a small amount of work to bring up to rentable condition.

High level $200k for a $36k gross return is a low yield..however I think there are a few variables..with 35% down you should be able to get stronger lending terms, if the seller is workable you could entertain a concession towards a rate buy down for lower obligations, possibility to look at shorter duration (ARM) loans if you only intend to own 3-5 years which could also offer a lower rate.

Itemize up his damages to the unit while you focus on re-renting.

I have a 4 bed/4 bath unit in a college town that is in a complex that is popular with international students.  

I only have 9 units and see some require 500+ units to participate. 

That's 281 units plus open storage.

Just to be clear, YOU don't have to be the operator, but YOU need to have known how to do it and ensure the operator you employee (either as in house or through a PM company) needs to know how to do this at a high level.