Plus the bank is tacking on fees and costs every day which increases the amount they wIll be willing sell it for.

There are abandoned warehouses nearby and there is a plan already to turn one into a brewery, so I think the value of the area will continue to increase over the next few years. 

This also means that with a larger down payment, the monthly debt service is less, thus increasing cash flow.

Now that you know how to calculate the current value or potential purchase price on the property...let's talk about determining ARV on this asset. 1) Do a complete rent comp analysis to determine if there is room to push the rents higher2) If there is room to increase rents...then you can start to determine what the value of the property would be after increasing the rents. 3) This will then allow you to back track to determine how much you would be willing to spend per door on CapEx improvements to achieve the rent premium.

If you were to purchase a much larger building, you could almost certainly increase your return on equity.

As i stated earlier, I would be conservative and increase your vacancy to 8% unless you already have a wait list of tenants.

(expenses ~ $367/mo and rent of ~$950) My concern is that I may never be able to finance it, and if prices start going down due to rising interest rates, the cash value of this might also get similarly depressed.

Are there any other concerns?

If the deal finder were to receive equity in the deal, it would be a maximum of 20% (15% is more likely).That said, if you are interning for this experience investor, a salary is also another option.The increase in your compensation will be in the experienced investors' control.

As for buy and hold, you’ll buy at a discount and the concern will be the quality/completeness of the remediation, which is almost impossible to verify..