Commercial Deal - what do you think?

[John Blankenship]

Small office/retail center in growing area of N. Georgia - starting to become more of a tourist center. Site located right across the street from tourist train depot depositing upward of 50,000 visitors per year.

Buidling renovated with new systems about 10 years ago - pretty good condition, etc. 100% leased presently

Rents (6 tenants) - $42840 ann.
Expenses - Management - $3500
Taxes - $2000
Water - $720
Insurance - $3500
Vacancy $3500 (+/-)
Repairs $2500 (tenants responsible for interior maintenance - LL is only shell of building and HVAC systems)
No common area utilities - all seperate metered

NOI - $27120 (8.34 CAP) - with zero down.

Although it shouldnt matter in the deal eval., seller has agreed to finance $100 K (on a second to close after I do the first mortgage) at 0% interest for 5 years (principal pmts. amortized on 20 year. schedule - $416.67/mo) They need to sell due to health problems. I can finance the balance at 7.75 on 10 year note with 20 year Amort. schedule. Looking at $325K purchase price.

I am interested in holding the building several years while the area matures and grows.

What do you all think?