Investor · CO · Member since 2015 · 3 posts · 1 vote
Bought in 2011 for $1.1mil with $200K down owner carry at 5.85%.
CAP rate of 6 values it at $1.7mil. Rents are slightly below average for the area.
I need to do some capital improvements. Roof, parking lot, sign and landscaping. I'm figuring $150K.
I've had thoughts about selling too. Not sure what I should do. Keep and improve and possibly raise the rents. Sell and 1031.
If I decide to keep - what is the fastest and easiest way to borrow money for the improvements? Personal loan, LOC, Or should I lean the company the funds and pay myself the interest?
Developer · Charlottesville, VA · Member since 2018 · 4k+ posts · 4k+ votes
7y
You could do a cash out refi. You should talk with some local commercial banks in the area and explore options. This way you can pull equity out tax free and keep the asset if it still cash flows.
You definitely want to increase rents as much as possible before you sell if you decide to go that route. You can do a 1031 or invest the gaines in an opportunity zone project.
Developer · Charlottesville, VA · Member since 2018 · 4k+ posts · 4k+ votes
7y
You could do a cash out refi. You should talk with some local commercial banks in the area and explore options. This way you can pull equity out tax free and keep the asset if it still cash flows.
You definitely want to increase rents as much as possible before you sell if you decide to go that route. You can do a 1031 or invest the gaines in an opportunity zone project.