re: To sell or not to sell commercial property?

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Btw, letting the mortgage run out with less than a month to go with no plan is very VERY bad planning.

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Well, I've got a hot offer on the table that I could take right now so the situation isn't dire. My biggest problem in keeping it is that my current tenant isn't willing to sign long term and isn't paying market value. I could probably go up on the rent, but for only 1 year. That year could buy me time to find a high quality, NNN, more corporate type tenant. I'm trying to maintain some confidentiality since there's an offer with real people and brokers involved, so I'll delete this later, but I value this boards opinion so here goes:

- Bought the building 8 years ago for $620K with nothing down on it (SBA/minority business type loan opportunity with my wife being the sole owner of the business in the building. She sold that business 3 years ago).

- 9300 sf office/warehouse with 1700sf of office/lobby space and an upstairs office overlooking the warehouse.

- The building has interstate frontage and is 2 minutes from the exit ramp. Again there's a LOT going on around us, much of it just hasn't broken ground yet.

- Current offer is for $1.3M.

- We owe about $430K on it. After taxes and broker commission we would net $660K according to my accountant.

- I should add that my business is leasing part of the office space and warehouse but that is not enough to float the note.

Running all my numbers on a spreadsheet, if I kept the property with the current tenants (assuming the bank let me) and rolled some upgrades into the new note (around $6000/mo) I would make $25-30,000 a year. BUT I would be in the market for a new tenant during the year.

Any more questions shoot. Need all the input I can get.