All Forum Posts by: Charlene Turczyn

I am uncertain of what I want to do.   We've made a pretty good cash flow off the building in the last several years.    Cash flow values it at 247K    Depreciation and rental income have offset the cost.    I have a mortgage of 128,000 on this building.   I think its salable as a duplex eventually.   The duplex and home prices in the area are going up 2% a year.   I think it will take 50-75K to turn it into a duplex.   Right now my money isnt making anything in the bank.    Taxes are about 6000 a year,  utilities about 2400 and insurance about 1500.00, Maintenance about 1200.  Either way I'm thinking of paying off the mortgage.    The other issue is charities in the area will not take donated buildings at this time.  Otherwise I would donate to the University.   So as you see,  a rock and a hard place.    The building is a class B and would be perfect for lawyers, accountants and professional services.    All who are currently working from home.  

Unfortunately,   I own this parcel and selling it now is useless.   I paid 375,000 in 2011 and its now worth 124000 as a commercial building.   Believe me if I could I would have sold it.   Its been on the market for 4 years.  Mostly with a tenant but with Covid, our tenant is not renewing next year.

We currently own a small commercial building, that I had my business in for a number of years.    Springfield Illinois is losing businesses at a rapid pace.    Our commercial building is zoned for multi family and is in an area surrounded by 4 and 6 plexes.   It is on 1.25 acres.  The commercial building is 3200 sq feet and has 2 heating/cooling zones.   The vacancy rate in the area for residential rental is 5%.   I can expect 1200.00 per month from each tenant side.  Commercial rents were going for about 10 per sq foot modified gross and have now dropped IF you can find a tenant.  The vacancy rate for commercial in Springfield is over 25%.    The building is located near(but not on top of) an exit to Rt 55 which easily takes you into St. Louis in an hour and 30 minutes and the airport.  The location takes you easily to all points into Springfield.  The building is also near the campus of the Springfield branch of the University of Illinois.    I foresee the building being empty for 2-3 years if we continue the commercial path.    The building was completely gutted in 2011 when I relocated my business, so its got new windows, new mechanicals, new insulation.    Would dividing the building in two and adding a kitchen and bathroom, make it worthwhile as a long term duplex rental?