Auto Shop in Chicago selling strategies?
Hi! Any feedback/suggestions from more experienced commercial real estate investors would be appreciated!
So my father is nearing his older years and is ready to get out of the business. He has an auto shop in Logan Square which if you know Chicago you know has changed a lot the last ten years. The neighborhood is now trendy and property values have skyrocketed and will continue to do so I imagine. The auto shop, the parking lot attached to it and a single family home on the lot we think could go for between 1.4 to 2 million.
What are his options? Selling for a flat 1.7 for example would incur a pretty hefty capital gains tax. My initial idea would be to receive something along the lines of 350k cash and seller finance the rest? Especially in his retirement years having cash coming in would be really important. That would also keep him from having to pay all of those taxes at once correct?
Would love to hear any other opinions/options!
Thanks!