There is an Old Motel/hotel in mine area because that sale at $164,000. I"m no sure just how old the is however the building looks choose it might be a good investment.I was thinking, would certainly it it is in a great idea to convert some old motel/hotels into apartments?Would I require a advertisement real-estate patent to operate it?My idea requires knocking under some wall surfaces to transform 10 motels into 5 apartments.What have to we watch for if we decide come invest in such a huge project?
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Yes you might make castle apartments. You do not need a commercial patent to execute this. You have to watch because that the pack bearing walls, you should also make sure that all apartments have actually two egresses, and also that they space up come the code of the township the you are in.



Donald Murrill i recommend getting a contractor in to take a look at the home to offer you one idea that the price it would certainly take to convert the hotel rooms into apartments. Include at the very least a 10% contingency of full project price so if overage occurs you will be all set to take care of the unexpected. You require to understand the full cost of purchasing and also fixing up this motel to view if the job would be rewarding when you carry out your rent analysis. Lastly, if this is your an initial fixer-upper, I indicate going in through an experienced and successful fixer-upper partner/mentor.


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Votes0

Donald Murrill
Rental home Investor from Mobile, AL

replied around 3 year ago
Karen SchimpfYour for sure right! I"ve to be racking my brain around this idea, wondering exactly how much I can make an ext so, than just how much it will certainly cost.I"ve to be hesitant about the price the $163,000 because that the acquisition though. I think It can be a small too steep for a run down hotel/motel, that can cost much more than that is worth.Wouldn"t girlfriend think?It"s to be up for sale because 2009, and the price mitigate several time from $199,000-$163,000. I just set an alert to wait til the price drops again.

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Votes0

Donald Murrill
Rental home Investor from Mobile, AL

replied around 3 years ago
Karen SchimpfThank you for helping me understand the situation.
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Votes197

Karen Schimpf
Lender indigenous Nat'l advertising Mtg Lender - ring Rock, TX

replied about 3 year ago
Donald Murrill The most necessary is doing upfront rent analysis using the number assuming you rehabbed the home to make sure the deal renders sense. Execute not rubbish time and effort if the rent analysis shows rehabbing the residential property will no make sense.


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Votes4.5K

Bjorn Ahlblad
Investor indigenous Shelton, WA

replied around 3 year ago

There is a factor this place has not marketed for nearly 10 years! Price. It is coming down while others space going up, andlikely demands to come under some more. There might be other worries too. More than likely a an excellent one to continue to be away from.


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Votes215

Nik S.
from Ohio

replied around 3 year ago
Donald MurrillBuying a motel and turning it right into apartment devices isn’t as basic as that sounds. I strongly recommend you to go to the zoning office to watch IF that possible. If it’s feasible within the zoning code then the conversion would be presented at a zoning conference where adjacent neighbors and also officials will offer their opinion. People then poll accordingly.
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Votes489

Lee Bell
Real heritage Appraiser indigenous Reseda, CA

replied about 3 year ago

It"s to be up because that sale because 2009,

Giant red flag.


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Votes722

Jeff Kehl
Rental home Investor native Charlottesville, VA

replied about 3 year ago
Donald Murrill i wouldn"t give up ~ above the idea just because no one else has tried it. A broker native Marcus & Millichap said me the this precise strategy can provide excellent Return on invest if excellent right. And also someone in my city just used for a zoning variance to perform this precise thing. I"ve been watching but around here castle want prefer $1-2 million for old, worn down motels that could work.

Listen come what
Karen Schimpf said around doing a rental evaluation and getting contractor bids. You have the right to do both for complimentary and also if the answer is the it makes no sense you will find out a lot indigenous the process.

Do you know what she method by this?

First on cost, uncover 3 building contractors in her area that can provide you bids. Friend may have to pay one architect a few thousand dollars to attract up to plan first. You"ll need a declare of work-related of everything you"d want the contractor to do. Some builders may assist you breeze that.

Don"t forget exterior improvements to soften it so that doesn"t look choose a converted motel.

Let"s say you do that and also the typical bid is $200k. Therefore after building you"re into the home for $363k.

You now have 5 apartments v an average price of $72k every unit. Come make the worthwhile you need your monthly rental to it is in $750-$1000/month.

That"s wherein the rent inspection comes in. Draw a one of around 5 miles approximately your property and look for any kind of competing apartments. Find out what they fee for rent because that a similar sized apartment. How countless square feet, bedrooms/baths, finishes, and amenities do you offer. You want to look for similar options and also see what they charge.

If they are charging $1100-$1300 and also have no vacancy you"re in an excellent shape, otherwise relocate on to an additional idea.

So, to summarize a bit, this strategy functions really fine in areas where small apartments are in short supply and fairly high rents. Think san Fran, NYC, Washington DC, Chicago, Atlanta. It additionally could job-related if you deserve to pick up the motel cheap and/or perform the building and construction cheap.

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Also, be an extremely careful with low-end motels since they often tend to be crime ridden and that deserve to be a difficult thing to shift out of.