First time in the commercial world

[Cynthia Nina-Soto]

My husband and I have been flipping single family homes North of Boston since 2015. This year we took a leap into what is now our largest project. We purchased an old doctors office, went before the zoning board and obtained the necessary approvals to convert this building into 3 residential rental units plus 1 commercial space. The building was purchased for $503k (cash) and the cost to bring the building to code and complete the residential units has us at an all in cost of $889k. Currently the 3 rental units have signed leases with rents totaling $5812/mos. I will be occupying the commercial space to use as my real estate brokerage. The market rent for that space is $2800/mos for which I will have a lease signed. The total operating cost for this building is $29500 however I'm budgeting for $40k as a precaution until we have a full year of actual numbers to go on. My husband now is considering selling and has asked me to figure out cap rate, ROI, etc and I am stuck. How do I figure out if it makes more sense for him to sell or to hold it? I swear the commercial world is so different than the residential world. Any guidance you can give me will be greatly appreciated.

Thank you in advance,

Cynthia Nina-Soto