Hello Bigger Pockets, this is my first post, and debating whether to hold or sell my office condo suite that I bought back in 2011 after my landlord filed bankruptcy and was left rent free for almost a year until I was able to offer a low purchase price to the bank that held the "bad note." Fast forward to 2019 after selling my practice that was housed in this office condo and the new owners paying me rent on a 5 year lease with 2, 3 year options to renew, I'm debating whether to now sell since my wife and I of 19 years are going through a divorce. In the settlement, our house and office condo are essentially worth the same when factoring in taxes for the commercial sale and no sales tax on our primary home. Therefore, if I agree to take the office condo and she gets the home, should I then hold onto this passive income asset and save on taxes, commission, and closing fees or should I sell and pay those fees now which would be split between me and my wife and then eventually invest in another commercial property? Otherwise, I could eventually 1031 the property when I find a new property or just hold onto the property indefinitely since it has an NOI of roughly $45K/year?
I appreciate any insight into how to best handle my next move on this commercial property since I'm also planning to relocate to South Carolina after living in Arizona since 2004?
Thanks,
Dr. C
