I had wrapped my head around residential not around commercial, But to me the deal seems amazing - you guys tell me 8000 sq. ft building7 storefronts on an active downtown street (all rented and currently have tenants)34 unit mini storage in back lot (29 units rented - the rest of the unrented are being used by the current owner)Asking price is $798,000 and owner is ok with seller financingAfter sitting with them today the owner who is 83 said he is ok seller financing and verbally agreed to $715,000 and a 4% interest rate, 30 year note, $100,000 down payment, no early payoff penalty - my lender and real estate agent both came back valuing the property as it sits at $840,000Income = Rentals ($5075) Storage Units ($1935) = $7010speaking with the owner he hasn't raised the rent on either the storefronts or mini storages for almost 10 years - looking at comparables in the area we believe we can raise the rent and storage units easily to push the income up to $10,000 a month 4 of the 7 Tenants have been there 5 years plusCost = Including estimated payment, taxes, insurance ect. would come to a monthly of = $4450that would cashflow $2560 a month at its current with the potential after purchase and rent adjustments cashflow $5460 a monthPending an inspection the property looks in good shape with little to none improvements needed at this timeA quick background I have had rentals before on the farm we own, three houses we rented out so I have some experience) My QuestionsIs this a good deal???

The geo report classifies it as “potentially active” and minor.

You could potentially put 4 of the 5 into a portfolio, but the one you are estimating to be worth $39k would be left out.

They get the cost step up basis and now they can sell or even better keep the company going and expanding and potentially have a much more comfortable life The nice thing about RE is you can do it for as long as you want - it's not a physically demanding job.

This is a long term investment for me, so I am not concerned with short term, potential market fluctuations as all RE goes up over time.

Hey Christopher, I'd say kipping thorough research on the property, local market and potential tenants.

Or where the funds to purchase come from (except that they need to use all of their 1031 proceeds in the purchase).The only time there will be a potential issue is if the daughter goes on the deed. 

Answer - you openly admit you've spent your time and energy to educate yourself. 

**A tip when interviewing a potential buyer's agent, ask the agent about the conditions for commission compensation when the seller is not offering full commission percentage to the buyer's agent.

You would get, potentially, the left overs.3.