Inherited Commercial property need help financing life change

[George Jeffors]

I just inherited and took title to a 2 million dollar 7 unit apartment building in Beverly Hills. I had been managing it from Nevada for several years prior to my mom passing and last year we put a100K into it in roof, windows and remodel. Rents are below market by 20% and rent control limits the ability to catch up immediately - so building may still have upside, it is an easy to sell A property in an A neighborhood, very hard to replace. Also have grandfathered tax savings of roughly 7500 per year,-buiding is 3.5% market cap, I live in Nevada and do the property management myself and use a local handyman. I am getting lots of advice to sell building and invest in higher market cap, have thought about buying a business just can't seem to find the passion, and lot's of people tell me to keep it.

The scenario I need help with is as follows.

My goal is quit my job in Nevada were I earn 50K working 3 days per week ( My Boss will work with me if I attempt to qualify for a loan in CA before I completely quit) I found my dream home to purchase, a 800K home in Encinitas California with an Ocean View. I would like to become a Realtor, sort of working retired.... My income is as follows
50K salary in NV
25K Spousal Support for another 18 months
75K Net income from Building in BH

My current home was under water, but recently it recovered enough so I can sell and come away with about 25K - my current mortgage is 425K and my divorce agreement dictates I sell or purchase in my own name within 12 months as my ex is still on the loan. I just can't figure out how to make this happen.... I will have about 100K in cash on hand, and 300K in my 401K.

How do I finance this change of life, do I rent for a while and wait until I have a Real Estate income to borrow against, do I sell the building and buy the house and a 1.2m rental property close to san diego. (maybe weekly beach condos ?)

Should I attempt to get some conventional financing in CA claiming I work 3 days in NV, should I buy something else in NV before I move as another door in my inventory? I am scared at the concept of borrowing 1m against the building with a 10 year term before variable 20 years.

Can I borrow 400K against building and qualify for a residential mortgage for the other 300K with 100 K down.

All ideas are appreciated

[Aaron Mazzrillo]

Sounds like you have been given an amazing gift and are ready to piss it away on lifestyle. Do not put your new asset at risk. With all that is going on in the economy, haven't you figured out that banks are not your friend? Use the income to rent a place in Encinitas. You can always live above your lifestyle renting than you can buying. And, on $75,000 a year rental income, you won't have much left over after paying property taxes and insurance on that 800K home. You might even find you don't like living at the beach. It is cold and cloudy 8 months of the year. Rent for a while and try it on before making such a foolish.. I mean big decision.