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Updated almost 8 years ago,
Advice on buying your own commercial office space
I own my own business and was looking into possibly buying our office space. We are locked in to a very good lease (with 3 years left and a possible 3 year tenant option to renew) which is making it tough for our landlord (who motivated to sell as he moved out of the area and doesn't want to deal with the property) to sell to an investor as the cap rate would be very poor. He is willing to sell to me at quite a bit below comparable units in our building. CAMS seem very high at roughly $600/month.
I have been looking into SFR, but figured this might be a great first step in investing as I could basically rent to myself. We have a stable business that is now almost 9 years old so I feel the investment is pretty safe.
One of my main concerns is how to structure this to maximize tax benefits. My wife and I both have MASSIVE student loan debt ($200K+ each) and are on income based repayment. So, our student loan payments are calculated from our adjusted gross income. Therefore, keeping our taxable income as low as possible helps us on both ends.
Appreciate any help you can offer!