Novice need guidance/advise from a pro on a property I own

[Richard Machemehl]

Hi season pros. I’m really needing some guidance and advise for a property that I own in Colorado ski town. I own a mixed use building which has one commercial unit and two residential units. I’ve been trying to sell this building for a few years. The few contracts that I’ve received have fallen through for various reasons (funding, inspections, etc).

The building appraised earlier this year at $2.15M and my loan balance is at $1.08M. Current rent rolls total about $10,000 per month, cash flowing about $2,000 per month after all expenses. The building will need some major repairs done over the next 3-5 years like roof, siding, deck, etc, which is estimated to cost about $60,000 to $80,000. 

I have the building listed at $1.895M. If I sold it for asking price, I’ll net about $620k after paying off the loan, transfer tax, real estate agent fees, etc. I don’t plan on doing a 1031 exchange, so I’ll be liable for taxes on the amount of capital gains that my accountant can’t write off. I plan on using the funds to open a business and acquire properties. 

This is where I need guidance and advise. If you were in my position, would you,

A. hold onto the property, do the repairs needed and continue cash flowing. Property value should rise over the next several years and I could try selling it again later or even do a cash out refi later. Rents should also increase over time.

B. continue trying to sell the property for possibly less than asking.

C. another option is that I convert the building into a condominium, create three separate parcels, and have the option to sell each unit separately. The repairs to the building would still need to be done and some remodeling would need to be done to the units. I could hold onto one of the units long term and cash flow. 
D. Do something else that I haven’t thought of. 

It’s a lot to digest and I have more options to discuss, so getting on a phone call would best much appreciated. I’m very willing and happy to pay for your time. 

Thanks for taking the time to read this and I greatly appreciate your feedback.