Private Lending & Conventional Mortgage Advice
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback
Updated over 12 years ago,
Inherited Commercial property need help financing life change
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