Commercial unit-Or turn it into an apartment
I have a mix use building. It's 1/2 a block from a busy intersection, however, there isn't much going on, on this block. My other units rent for 1650, residential. The first floor is rented out to a seasonal business, they pay year round, $1000 a month. I inherited the lease at purchase. I am planning on raising rent April 2025 when the 5 year lease expires. However, if he does not accept, I think I can rent for $1600, however I would have to convert into an apartment layout, bathroom, kitchen, etc. Which will cost money. I think if business renews at $1400, great, I do nothing. Is there an upside to renovating whether the business renews or not?