Anyone ever turn a motel into appts?

Question

Just curious if anyone has ever bought an old motel and turned it into efficiency apartments or done anything else with them. Rent is pretty high here and a lot of people seem to have a hard time finding somethig affordable AND decent. I have some ideas about this and would love to discuss possibilities!

Matt Crusinberry · Answer

@Tina S., I suggest looking into Brian Murray's interview with BP's podcast 126 and 212. However, I personally have not moved into transitioning buildings. I hope this helps, good luck!

Tina S. · Answer

So much to think about and so little knowledge and money! I think I will start researching just to see the feasibility of something like this here in Cheyenne.

Nik Moushon · Answer

Just be aware there are a LOT of building code issues going from a hotel to a MF building. Its not as simple as moving interior walls and adding bedrooms and kitchens. Definitely get an architect involved in something like this. Good luck though! I've heard it possible to make a good return on these kind of flips.

Ronald Rohde · Answer

Yes, absolutely can be done. It really depends on the market and condition/location of existing building. Is this going to be in WY? I have a client who would be interested there

Tyler Kastelberg · Answer

@Tina S.

Tina: Great idea! I work with a few folks who have done projects similar to this. You'll find that hotel valuations are lower (higher cap rates) when compared to multifamily. It wouldn't shock me that projects like this can produce big returns.

Side note: Before embarking on this, be sure that you have a solid development model that can accurately project the construction debt and construction schedule in the analysis.

Tina S. · Answer

@Matt Crusinberry I will check it out. Thanks for the info.

Anyone ever turn a motel into appts?

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