Commercial Building - Posted by Mic
Posted by Mic on November 20, 2009 at 05:47:03:
I bought a 6500 sq. ft office building about two years ago for 500k. I put 300k into the building in improvements. It’s a little unique in that it is directly across the street from the county courthouse so I rent 10 small offices almost exclusivley to attorneys. My office occupies the 2nd and 3rd floors of the building. Right now only eight of the offices are rented. The building is completely wired for t-1 internet access so I sell internet and phone service to my tennants as well. Once the building was rented I was able to refinance the whole 800k @ 6% with a 25 year amortization and 10 year baloon (P and I payment $5,500) I rent the offices with phone and data for $890 per month, plus I paymyself a market rent of $2,500 per month for my space.
Question: With all this talk about inflation/deflation curruncy devaluation, should i consider unloading this puppy? Current rent roll approximately 115k - potential 136k. Taxes are 9k.