Own a commercial Building and Need advice on what to do next.

[Chris Packer]

Over the last several years, I started a business and as part of that business we purchased a building.  I recently shut down the business, so now I have a commercial buildling that has appreciated in value by about 60% since I purchased it.  My plan all along has been to hold on to the buildling and lease it out so that I own an investment asset.  I have owned some residental rental properties in the past, so I have some experience and definitely interested in real estate investing.  I am in a bit of a bind personal finance wise because I should have gotten out of the business I shut down sooner.  I currently haver a private mortgage on the property that I will need to refinance in about a year or I have to pay a baloon payment.  The buildling is in a good location but it needs some work.  I need to put HVAC in the building (at least the bare minimum) and I need to repair the roof.  I have gotten some estimates and that looks like about $30k total if I just use local contractors, If I do some of the work myself and do it as cheap as possible, I might be able to do it for $20k.  Building Stats: I owe ~$250k on the building, I have had offers to sell it for $390-400k.  The property will lease for about $3k/mo and my current payment with the terms of my current private mortgage is $2100/mo.  Bottom line is that I believe in real estate investing for the long term, and feel like I'm in an advantageous position, but am pretty cash poor currently, and don't want to walk away from a good deal if this is the one.  I could really use some input from some of you who can see this more clearly.  TIA.

[Gino Barbaro]

@Chris Packer

This is a tough call. It's all about timing and the ability to finance the property. If you are cash poor, and can recoup cash from this transaction, it will give you some ammo for the next deal that is going to come in the next 12-18 months.

If you were using the space, that would be different, but if you're looking to rent it out, and are stuck without a tenant, you become even more cash poor

Good luck

Gino