I came across a motel deal in southern OR and I think the numbers look very good. Unfortunately I am relatively new, don't have enough down-payment (even with seller carry) and have no experience with a motel/hotel investments.
The seller is ready to do 10% seller carry and I can probably do 3 to 4% down with some partner equity with new financing.
I would like to work only with someone who has experience with hotels/motels specifically as I have heard lenders are very picky when it comes to lending for hotel/motel and require experience from the borrower/partnership to even look at a deal.
Here is what I know about the property -
Asking price - $575k
10% seller carry behind new financing.
Total of 16 rooms + 3 bedroom owner's/employee quarters
The property went through a lot of renovation in 2013
2014 room revenue - $182,250
Expenses and COGS - $83,979
NOI - $98,271
Cap rate of about 17% with an absentee owner business
Independent motel and does not have third-party/franchise agreements
eligible for USDA financing but as I mentioned before the new borrower has to have experience with hotel/motels.
Just wondering what happened with this deal. I am looking at a similar deal so any help would be appreciated.