Commercial building w/2nd floor residential
We're looking at a building that has a cafe on the 1st floor, which we would operate, and the 2nd floor is vacant-would be renovated to 3 apartments. Current asking price is 375K, but I think it's worth closer to 300k. Renovation of the upstairs would take ~450k (including a new roof, AC in the cafe, fixing exterior brick etc.) The state of MI has a grant that would cover 50% of the upstairs reno reducing our reno price to ~300k. The link below shows the breakdown. Is this as straight forward as the numbers show as we'll operate/own the cafe and own the building? We figured 2k for rent to the building LLC for the cafe. Sorry if this is confusing and thanks in advance.
https://www.biggerpockets.com/buy_and_hold_results/783420