Should I back out of this deal?
I have under agreement a commercial property which has 8 units. I have discovered a few issues while doing my due diligence that have me leaning towards backing out of the deal. One issue is that one of the 3 buildings on the property is zoned commercial has 4 units. 3 of the units are residential but the Town only has 2 legal residential units allowed. My plan was to convert the 4th unit to residential as well. So I have added zoning board risk. The other issue is that I can't get title insurance on one of the properties as it has a marijuana cultivator on the premises. I requested a price reduction and removal of the marijuana grower tenant but the seller isn't budging. The deal is $470k for $6400 rent with potential for more in the space where the grower occupies.
Curious to hear other perspectives.