Long story short, it could mean you have to cycle out tenants and be ready for some lean months ahead (vacancies, non-payments, evictions). 

Very professional, quick answers to questions, good tenants, and no vacancy longer than a week.

I believe that this deal would offer better cash flow than a rental and come with less headache of being a land lord (e.g. property management, vacancies, maintenance reserve, etc.). 

My partner is looking for the BEST Commercial Leasing Agent in Chicago area/South suburbs.He recently acquired 50,000 sqf commercial space in one of the south suburbs and needs to fill the vacancies. 

After rehabbing costs (you will be inspected by a HUD inspector, and have to meet minimum living standards, which are not that minimum), assuming a 10% vacancy rate (not really a vacancy rate, but more like a "tenant not paying full rent" rate), plus associated costs, my CAP was in the red. 

.), it means maintaining adequate cash reserves (to handle unforseen CapEx, vacancy, etc.).

When I ran the numbers I started with 180000 as the price, 4.2% interest, 4600 a year taxes, fees out of pocket, 30 years, 2200 (potential rent when we move out in 3 years or less), utilities paid by tenants, I didn't know what to do for insurance so I put our current insurance (rental property and our current renters insurance) 72, with a management coverage of 10% with repairs at 10%, vacancy at 5%, capex at 10% and no future expectations the cash flow came out to be 160 a month and a 14.31% ROI.

I know I definitely need to peruse some of the other forums, however I'm assuming having three months mortgage set aside to cover tenant vacancy would be somewhat adequate( I know it's probably not ideal, but I could maintain the additional mortgage short term on my salary if I needed to)? 

Current vacancy rates are below 10% in this market.11.

Vacancy, maintenance, Capex and Prop Mgt are often overlooked but are a crucial part of the monthly expenses, especially when wanting to hold and investment property.