Does it really? That’s interesting.

My gut tells me I will have some serious sellers remorse. But you are correct there would be less stress. Crazy as it sounds I kind of enjoy the stress.

But if that’s coming across in my post maybe there’s something to that.

I will say this, my wife and I have fought like hell to get to this point. We’ve had a business in the building that’s not a stable business model (youth sports) and it has taken a lot out of us. It’s nice to see it pay off. But the market makes this decision very difficult.

Probably the hardest I’ve ever had to make.

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Posted by Im4datigers

Northern Virginia

Member since Oct 2003

4466 posts

Posted on 1/27/24 at 9:26 pm to Mohican

Commercial banker here - sell it if it’s that kind of life changing money to you. A one year lease is a short fuse and a lot can change between now and then. Plus if you switched out tenants you’re probably looking at a few months of no income plus all the expenses of doing upgrades for the new tenant (given you can finance that in to the new loan).

On the flip side if you have a much stronger tenant in your back and can get the bank to finance in the rehab work then keep it. A stronger tenant at market rates is going to make the value of the building go up even more. But have that tenant in the back of your pocket. Don’t go to the bank looking for a new loan with a single tenant lease in place that has less than a year to it. Might not be a great conversation.

Why don’t you sell it, 1031 the money and put it into two or three cash flowing properties to diversify your holdings? Get with a good COMMERCIAL broker and discuss the options. Whatever you do, don’t use a residential realtor.

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