Tenant paying below 50% market value rent, sell?

[Krish Patel]

Hello,

I have a peculiar situation here in India. My mom  owns small commercial rental in India that I was managing and I am planning to relocate to USA soon on my job. The current tenant is paying only 50% of current market rent and had several missed payments during pandemic. I am left with two options one is to sell and reinvest the proceeds in a more profitable market for cash flow or raise the rent. I am expecting the property to appreciate aggressively within the next decade while the rent I we are currently getting there is like peanuts.

I have proposed to the current tenant to increase the rent else he will have to vacate and awaiting for his response. 

If we decide to sell we will have to buy within 2 years a similar property to avoid a tax hit. I am expecting it to sell for approximately usd equivalent of $150000.

Is it possible to reinvest that  in USA with the least possible tax hit? Separately I will appreciate if someone can share with me a commercial rental lease document template 

Thanks

[Taylor Dasch]

From my limited understanding of commercial property, it would be in your best interest to get the rent increased whether you increase rent on the current tenant or get a new tenant at market value. When you sell, it will be based on cap rate so the higher the rental amount, the higher sales price you will be able to get. 

For your question about investing in the US, I would reach out to a lender on here and ask them directly. One of the top posters in the financing portion of the forums specializes in 1031 exchanges but I cant remember his name.