BUYING REAL ESTATE W/ BIZ ON 30 YEARS TERMS? GOOD IDEA OR BAD?

[Steven Barros]

Hello BP,

I have an opportunity to buy an established beer and wine market w/ existing business. Offer is 400K for both. The business claims it nets 120K, the owners are not currently paying themselves rent. The building and property could use some fixing up it is in a neighborhood with home prices from 140K-210K ARV. The area is lower income. I could most likely get a 25 - 30 year fixed loan to purchase the property. I have the capability and wouldn't mind building the systems to turn the operation absentee.

My question is this: Will taking a 30 year loan hurt me in the future for build other property as well as a personal residence? Will banks frown at the debt or will be seen as an asset that brings in revenue when I am ready to get my own home next year? I am hoping to use the income from this potential investment to help pay or completely cover my mortgage. 

I do not want to be deemed over leveraged down the road, however I am not sure at what point one becomes "over leveraged" in the eyes of lenders.

Any advice on this is appreciated. 

Cheers!

Steve