First property, security deposit and inspection/appraisal help

[Chris Cadez]

Hello bigger pockets friends, I am working on my first deal (super pumped about that), it is a 4 unit commercial property, 2 residential rentals (1 occupied 1 unoccupied) and 2 commercial units both occupied. The 3 units that are occupied are longer term renters, and the 1 residential that is rented also rents 1 of the commercial units. The guy I am buying (who is financing the deal) it from didn’t collect security deposits due to a number of reasons (work they’ve done on the units or things they currently do on the property).

My question is when I buy it do I ask them for some sort of deposit? I don’t want to upset tenants as my first thing when I take over but I also want to protect myself. I am also considering and, based on talking to the current owner, raising the rents some because they are low for the area.

Next question since he is financing it we are working though terms of the deal, he was thinking 10 years at 5%, which I am not entirely for, I was thinking closer to 13 at 4%. Currently

Running different scenarios. Any thoughts as to terms or rates for a self funded deal?

Finally when talking about price and inspection, he is set on a certain number based on talking with a real estate agent he was going to list at $200k. With us not using one he is looking at $180k, which based on my research is a fair price. Question is do I still get it appraised? Based on talking to him it doesn’t sound like he would sell lower even if it came back lower. I do feel like an inspection is still the right thing to do.

Any advice is much appreciated!