How long would it take to recoup the money you spent on the point reduction is one big question.

So with an NOI, that you can defend, the appraiser will look at the local cap-rates that properties similar to your demand in its area.Now I'm no appraiser but especially on a commercial property the purchase price should pay very little weight into the value. 

Drop the weight and you’ll be in better shape.

@Michael Kiger conventional loans definitely have their pros but it seems like there made be some upside by getting a commercial loan here as the seller wouldn't have to split the property up.Also, with a 5 unit property you would be able to sell/refi it based on the income approach as opposed to 2-4 unit property which are mostly weighted in the direction of square footage (at least in my market). 

Many brokerages have exemptions for the sale of your principal residence but will want their cut in investment properties Being an independent broker, I always attempt to forfeit my commission and instead get a price reduction 

@Tom Fidrych Actually the listing's I'm interested in have been on the market for over 3 months and have history of price reductions.

A clean lead cert helps me sleep at night (the units are rented to families with small children) and it also gets us a slight reduction in insurance rates.

For example, most of my current deals I try to have zero loan points because I care more about having enough capital towards future deals than I do about getting a 0.25 or 0.5 point reduction since rates are the lowest they've ever been historically.

Lender is telling me we can get .5% rate reduction if we go with 25% down.

Tell seller you want a price reduction to match that amount since he signed the leases which materially effected the value of the property.