Renting out one of my own Commercial Office Space Units??

[Jacki F.]

Commercial Real Estate Newbie question here!  

I purchased a 7500sqft, 5-unit office building under an LLC that I use for my RE Investments. I purchased for 410K and the building appraises as-is at $520K. Current renters are paying way under market, and the building is U-G-L-Y.

Currently two units are rented out, and I'm moving my other LLC "day-job" into two of the units, and will be paying my RE Investment LLC rent.  My plan is to refinance asap to get my down payment back out, just as soon as I finish sprucing up the place, raising rents, and finding one more tenant.

My question is: Can I raise the value of the property by charging myself the higher end of the rents for the area (which I don't think I'll be able to get for the other units)?? Example: If my other units are paying $13/sqft and I'm charging my other LLC business $19/sqft to raise the NOI, when it comes time to refinance, is the bank appraiser going to look at that and see that I am essentially renting from myself and charging myself a high rent, and therefore not honor the higher NOI for the appraisal??

Thanks for your help!

canton, georgia, woodstock, cherokee county, refinancing commercial, owner operator,