I made a big mistake on my first out of state rental about 10 yrs ago at the peak of the market back then.  

I retired 20 yrs. ago with passive income from a Retail Center in Reno and Apartments in Fallon Nv.

The older man with a good steady job, and an old narcotics conviction from 20 yrs ago, a number of Hispanic families with steady jobs, and who understand that you're supposed to pay your rent every month, an older Hispanic gentleman who is paying about 80% of market rent (we inherited him when we bought the building) and is so grateful that he pays BEFORE the first of the month, a very well organized AA woman with kids and a job and Section 8. 

While I intend to use 51% or more for my business, I would like to know (from those who have experience with this type of loan) what happens if in 4 yrs I reduce my occupancy to say 40% (due to change in business needs). 

Cash flow is 904 for building.Tax - monthly interest is 372 and monthly depreciation (27.5 yrs) is 242. 

Seller is asking $130k with 7 % interest and only $5k down over 15 yrs.

I'm only 1-3 yrs from retiring from my FD job, so it only makes sense to wait until there is no W2.  

I have over 15 yrs of experience in this field of online banking and backend processing for banks and credit unions. 

The days of using someone's "market rent" estimate for vacant units are past, I believe.You will not be able to lock a reasonable rate for longer than 7 yrs generally, and most limit the fixed term to 3-5 yrs.If you're relatively inexperienced, they'll be looking more at you personally, so your job income, credit score, and financial statement position will be more important.

I am 29 yrs old and the experience I gained by doing I myself will never be lost and I got better as I learned.