3 Story Commercial Zoned Building Advice Needed (W/ Link to Listing)

[401Killer]

I have a potential opportunity to purchase the 3 story building linked below. It is about 3500 sq ft with the first floor on Michigan Ave in Ypsilianti MI. The second two floors have been renovated. Currently the place has a pending bid but in case the deal falls though I'm looking to be ready to make a backup bid. I am confirmed as being second in line. I'm just looking for some advice on this property and if others believe it to be a good opportunity.

The major stuff has already been done on this building in the last 8 years, newer windows, insulation, roof, HVAC,  etc...

I would sell my own home, Zestimate about $147,000 and it's paid off. Depending on what I would be able to sell my house for I would hope to put at least $130k down on the building. Because it's a commercial property I cannot get a standard mortgage. It would be a 20 year loan with 5 year locked insterest rates starting right now at 5.5% interest. Payments for $170k loan would be $1162 a month without taxes (taxes ~$4500/yr). I've met with the bank (across the steet) already and the person seemed very confident in my situtation and the building itself. He was well aware of the building and has walked though it. I've talked to a few people who are very fimillar with the property and not have had much of anyone say anything concerning about it.

The downstairs store front would rent out for about $1,200 to $1,500 a month.

The property having the rental store front is the major reason I am personally interested in this. I'm not looking to purchase a giant home for $300,000 but the investment opportunites for this property seem to be highly profitable. I love the city and living in the area would be a very fun change for me(something I'm looking for). My drive would go from 8 minutes to about 40 minutes however. Long term rental opportunites could also have some great advantages. Possibly splitting the second and 3rd floors into separate units and renting all 3 of them. This is a major college town.

https://www.realtor.com/realestateandhomes-detail/12-W-Michigan-Ave_Ypsilanti_MI_48197_M39941-90664#photo0
http://www.mlive.com/news/ann-arbor/index.ssf/2014/06/historic_home_tour.html

[Michael in ABQ]

Seems like a pretty good deal if you could get a tenant to essentially pay your mortgage. I assume there's a separate entrance to the residential portion that doesn't require going through the storefront?

I've appraised a few buildings like this but most were not renovated and were selling in a small college town for about $15-30 per square foot. The few renovated buildings that did sell were similar to this price, in the high double digits per square foot. Looks like they did a nice job remodeling it. Just make sure they did the stuff you can't see like the plumbing and electrical. 50-100 year old pipes will cause a lot of headaches and be expensive to replace now that it's got a nice interior. Much cheaper and easier when it's a shell that's being gutted.

[401Killer]

Seems like a pretty good deal if you could get a tenant to essentially pay your mortgage. I assume there's a separate entrance to the residential portion that doesn't require going through the storefront?

I've appraised a few buildings like this but most were not renovated and were selling in a small college town for about $15-30 per square foot. The few renovated buildings that did sell were similar to this price, in the high double digits per square foot. Looks like they did a nice job remodeling it. Just make sure they did the stuff you can't see like the plumbing and electrical. 50-100 year old pipes will cause a lot of headaches and be expensive to replace now that it's got a nice interior. Much cheaper and easier when it's a shell that's being gutted.

The plumbing was replaced and is all copper. The electrical looked resonably updated, modern boxes and switch gear. If the current deal falls though and I have a bid put in and accepted I'll hire an inspector.