Looking at it from the seller side, it's pretty much a losing proposition UNLESS the property can't be conventionally financed at all due to its conditionand it's actually necessary to do creative lending to sell it.  

Am I doing risky gamble here? 

The proposition is basically, "I'd like to take over the studio space and, in exchange, reduce your rent by $X.

The risk is relatively low because, if you’re already spending a good amount of money on rent, a mortgage would be reasonable in the worst case of long term vacancy.

I am not on the multifamily train and think it is highly inflated right now (upside is low, down risk is high).

This comment regarding the potential inability to refi, for whatever reason, in 5 years is the biggest risk I see (as an observer). 

Afterwards you can decide if you want to switch for the next year.The main risk is that your CPA might never produce your tax return and just disappear.

The building is in a neighborhood that is starting to turn, there are lots of amenities and desirable businesses nearby.Value exists in opportunities most people think are too risky.

Hire a professional property manager and maintain your homes per local, state and federal building codes and you're liability risk is rather low.

And that can be risky in the wrong circumstances.