Lots of good info here for renting out residential housing. I'm kicking around a few ideas on whether to sell or lease my commercial property. I don't know a whole lot about leasing but the general consensus seems to be that it is much less work and responsibility for the landlord (me) than a residential home. I plan to leave the state so the property will not be under my immediate supervision, although I could have family come by and check on the lessee if needed. Here's some facts:
I think I would list the property at $139,900 if I were to sell it. It is a rural area but has other businesses around. It's a 2400 sq ft building on 7 acres with more than enough room to expand. Nice highway frontage.
I owe $45,000 on the property so I stand to walk away with some good cash. The option to lease it appeals to me. Is there any general rule on how much the lease would be? I compared it to the payments a person would make on the sale price, with 5% interest for 20 years, and that would be about $800/month. Would a lease for $875/month be accurate? That is about how much the annual property tax is. I could lease it for two years or ten years and probably sell it for as much or more than I could now. Seems like a good income stream with a sale at the end.
Any help or tips would be greatly appreciated!