Advice on buying a property

Hi all,

Wonder if you have any advice on what to look out for when buying a property.

The property I have found (have yet to visit it since it is weekend and all) is in the middle of a very nice park with lots of free space around.

It's set on goverment land so the rent for the land is ca 42000 SEK (1EUR=10,3SEK) a year. The property itself has been a restaurant for many years (noone can make ends meet when it comes to running it as a restaurant and tbh I think noone can since the location is wrong for such a buisness).

The location itself is in the middle of town in a park and close by is one of four state casinos in Sweden (Malmö, Gothenbourg, Stockholm and Sundsvall). It is dead center of Town more or less.

Lots of free parking around the park (80% of Daily visitors from Sweden comes by car in the summer). It is 225m2 and has a big terrace and bbq outside wich belongs to the property. By Swedish standars it has to have atleast 2 toilets for guests and 1 toilet for staff also one shower for staff so none of that has to be built. Included in the price are all inventorys so that means I do not have to buy any of the kitchen appliances, yes I probably have to rebuild the kitchen since a restaurant kitchen would simply be to large for a hostel, atleast when it is only 225m2. The price for the property is 1,2million SEK which I find a little to good to be true..

So what should I look out for? I am aware of that I have to get the licences and it could fail by that. But what more can you think of that could be a trap?

And ofcourse do you think it would be possible to run a hostel in this location?
How many beds would suit this kind of location. The average occupancy rate in Swedish hostels are around 40% in this town. The prices range from 185 SEK for a dorm to 285 SEK for a single room.

Would be thankfull for all the suggestions you can give me :)

WKR Richter