Hello everyone, I need help making a decision. Here is my situation:
Other factors to consider:
- I own a piece of commercial property that is rented out to two businesses. Current loan amount is about $455k @ 4.8%. Monthly mortgage payment is $4,500. About $2,700 goes to principle, $1,800 into interest
- I collect $9,370 in rent per month. I pay a total of $1,525 in condo fees, property tax and insurance. My unit is part of a larger building, hence condo fees. The rent is gross, I pay condo fee/property tax.
- The load needs to be refinanced by end of November of 2024
- I have enough cash to pay off the entire loan. The cash is currently sitting in treasury bills that mature in Oct/Nov timeframe
- Based off my phone calls, the best loan rate I can get is 7%, and that is if I'm lucky
- For the loan, I'll probably have to pay half a point, plus all the fee's associated with getting a loan. The loan length is about 5 or 7 years
Other factors to consider:
- I currently don't work and live off my rental income (I have other rental properties).
- The property is very easily rent-able and maintainable, requiring minimum work/headache on my end. I've had one tenant there for 9 years. The other wants to extend his contract.
- I don't have anything else I need to do with this cash. Can't buy new property commercial property. Don't want to buy a house...though this may change
- I have no other debt outside of other mortgages
- I haven't been working for a few years, and I have a medical condition that makes going back to work annoying. Also I just don't want to go back to what I was doing....though I may irrespective since I miss my awesome medical insurance and a paycheck. Also America is expensive.
- No wife, no kids
Statistics: Posted by grandnexus — Mon Jul 22, 2024 7:40 pm — Replies 2 — Views 279