If the cap rate is breaking even or above interest rates it most likely would make sense, taking into account that in five year period interest rate have a higher possibility of coming down than going up. 

Typically most lenders will cap you at a $500k line of credit limit.

You would have to remove the whole thing and cap it off and once you do that, they will never let you put it back because you did it without permits.

However you are in a position to be able to do it through loans or cap ex funds.

I think the market for small bay flex space is right around $15/SF NNN and I would want to achieve a 10% cap rate going in and an 8% cap exit.

Also find out if you have caps on rent increases. 

Maybe you have this buried into maintenance.Your cap rate is not correct.  

I've used templates from BP and other sites like Avail as a start and then asked my attorney to incorporate additional language needed for MTRs like the utility caps, monthly cleanings, etc. 

Current cash flow is $557/MO - Cap Rate 6.9% and COC 18%.Does this sound like a great opportunity?

What’s an attractive price point and cap rate?