Need advice on freeing up my cash

[Phillip Rhegness]

I have some commercial property that I have completely paid off. It has been few months now and I want the money (or at least some of it) back. I have tried finding a renter but in this small city those who know real estate and watch it have spread the word about the super low price for which I bought the property. Three potential renters have said they know what I paid for it and won't let me make a profit off them. They will only agree to a unreasonably low rent which would not be profitable for me after insurance and maintenance costs. So it is not being rented.

I tried selling it but the realtors inform their clients of my purchase price and I get stupid low offers of half the appraised value.

I bought it with the intentions of renting it out and waiting 10-12 years for the area to respond to the new interstate 1/2 mile away. I planned to purchase the four surrounding properties to have a six acre parcel with road frontage on three sides.

I have a friend who wants to give me the amount I paid for the property in exchange for half the sale price when it is sold. Sounds tempting. We would split the purchase prices of the four adjacent properties as well.

So, what advice do you guys offer? I feel my money is tied up and not working as hard as it could be in a property I could actually rent!!! :wink: I have been told many times not to own a property because it ties up your own money. It is better to use the bank's money so you borrow what you can. I planned to keep it as a long term investment so I thought having it paid for would be the best course of action.

Do I take whatever rental I can drum up?
Do I sit on it like some have advised and let it appreciate?
Do I sell half to someone?
Do I cash out some of the equity and invest that into an income producing property?

Questions, questions, questions...