I am in a quandary whether to sell or keep the building to sell later.
Let me give some information -
We built this medical office building in 1999 for $600,000, I use one section & rent out the other two sections. We paid the mortgage off in these 12 years with extra payments.
Now total rent from 3 offices - maintenance & taxes = $50,000 net.
We have an offer of $600000, which is 12 times the net income of $50000. I want to retire in 1-5 yrs & can possibly sell it at that time also. The proceeds will be saved for retirement, as we are self sufficient at this time.
The question in my mind is to sell now or wait for a few years and sell, there is no way to predict this real estate market, it may come back in few years or may take 10 yrs.
Is 600k a good offer for the above given returns or should I wait for few years for a better offer (
??), and in the mean time keep saving the 50k each year. We do not have any other rental properties.
Thanks in advance, will be happy to give any other needed information.