Event hall as a rental ????

Event hall as a rental ????

Developer · Bellefontaine Ohio · Member since 2016 · 371 posts · 219 votes

So here’s what I found, an event hall building for sale. It has plenty of off street parking. Basically it’s about 2500 sq ft rectangle building with a kitchen and his and her restrooms in the middle and 2 large open rooms, one on each end. Includes lots of chairs and tables. It’s 2 blocks off of a major road. People rent it for weddings, family reunions, etc for maybe $150-200 per day per end. It needs some major updates, but seems to have good bones. Rooms are approximately 32x40 each. I figured all in, with updates, I’ll have maybe $250 k in it.

Please give any and all thoughts.

Worse case it could be converted to regular apartments. But with all the covid19 no eviction garbage, I’m thinking this might be worth looking into.

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Lender · Los Angeles, CA · Member since 2009 · 1k+ posts · 2k+ votes
5y

Your post, @Steven Westlake, reminds me of others here asking about car washes and self-storage facilities.  True, these involve a real estate component, but really, you’re starting a business.  What do you know about running an event hall?  You already noted some competition.  Do you have a business plan?  How will you handle employees, suppliers, and contractors?  What about caterers and the health department?  Have you ever run a business like this?  Who is your competition and how will you provide a competitive advantage over them?  This is not a business you can defer to a property manager.  It’s a job.  Do you have any expertise here?

I’m also curious.  In this day of housing shortages and rising rents, you mentioned you don’t want to deal with all the “Covid19 no eviction garbage,” yet you’re ok creating a facility specifically designed to encourage others to congregate during a pandemic?  Does this actually make any sense to you?

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  • Developer · Bellefontaine Ohio · Member since 2016 · 371 posts · 219 votes
    5y

    More information- a place near by rents out to weddings for $1400 for one day, it’s about double the size and nicer.

  • Real Estate Agent · Sandwich, MA · Member since 2014 · 974 posts · 636 votes
    5y

    @Steven Westlake

    If you’re going to be doing the rentals to individual events, it will be a good amount of work for turnovers and cleaning, etc. The rental rate they are currently getting doesn’t sound like it will cover upkeep and turnover. Run the numbers and see if it pencils out…

  • Lender · Los Angeles, CA · Member since 2009 · 1k+ posts · 2k+ votes
    5y

    Your post, @Steven Westlake, reminds me of others here asking about car washes and self-storage facilities.  True, these involve a real estate component, but really, you’re starting a business.  What do you know about running an event hall?  You already noted some competition.  Do you have a business plan?  How will you handle employees, suppliers, and contractors?  What about caterers and the health department?  Have you ever run a business like this?  Who is your competition and how will you provide a competitive advantage over them?  This is not a business you can defer to a property manager.  It’s a job.  Do you have any expertise here?

    I’m also curious.  In this day of housing shortages and rising rents, you mentioned you don’t want to deal with all the “Covid19 no eviction garbage,” yet you’re ok creating a facility specifically designed to encourage others to congregate during a pandemic?  Does this actually make any sense to you?

  • Rental Property Investor · Boston, Massachusetts (MA) · Member since 2016 · 2k+ posts · 2k+ votes
    5y

    @Steven Westlake lots of these things around and vacant, and that was before Covid. Why can't they fill it? Leave Covid aside, events have more and more moved to a full service model. A generation using wayfair, ikea and on demand stuff has less and less interest in DIY events, certainly not at anything resembling a profitable rate. I think @Jeff S. nailed it.

    If you were determined to buy this I'd give some thought to a small office cluster for therapists/ practioners like counselors, massage therapists etc. Less infrastructure buildup, high turnover compared to conventional office but much less work than events etc. 

  • Member since 2019 · 42 posts · 22 votes
    5y

    @Jeff S has the answer; this is not a "real estate"  situation, this is a "starting a business" situation.

  • Developer · Bellefontaine Ohio · Member since 2016 · 371 posts · 219 votes
    5y

    @Mason Hickman- valid points, wife loves doing the decretive fancy stuff, so that’s my plan for now.

  • Developer · Bellefontaine Ohio · Member since 2016 · 371 posts · 219 votes
    5y

    Thanks for all the input.

  • Developer · Bellefontaine Ohio · Member since 2016 · 371 posts · 219 votes
    5y

    @All - i won the online auction, I’ll try to post updates on here.

    The winning bid was $70,250 plus 10% buyers fee so $77,275.

    The address for those who want to google it is 1628 cr 18, Bellefontaine, Ohio 43311

  • Baltimore, MD · Member since 2018 · 431 posts · 281 votes
    5y

    Are the bathrooms up to the newest and hottest ADA requirements? And the rest of the space? If not, it's a nonstarter. 

  • Baltimore, MD · Member since 2018 · 431 posts · 281 votes
    5y
    Originally posted by @Steven Westlake:

    @Mason Hickman- valid points, wife loves doing the decretive fancy stuff, so that’s my plan for now.

     Is your wife on trend with the popular wedding venue look in your area? It doesn't matter whether she makes things pretty. It matters whether your key audience will like it. 

    This is something that lots of people don't realize. You're not decorating for you. You're decorating for the market!!!!

  • Developer · Bellefontaine Ohio · Member since 2016 · 371 posts · 219 votes
    5y

    @Genny Li - excellent point , i need to check

  • Developer · Bellefontaine Ohio · Member since 2016 · 371 posts · 219 votes
    5y

    @Genny Li- agreed, our wedding opinion does not matter much,

    I’m also giving some thought to just making it our personal house, lots of mature trees, a full acre lot, 2100 sq ft, sell the Houston house, that bumps us from 1700 to 2100 sq ft , and a 6200 sq ft lot up to 42560 sq ft lot. No water bill, taxes would drop 75%, and no more mortgage. Plus our 6 rentals are near here.

  • Baltimore, MD · Member since 2018 · 431 posts · 281 votes
    5y
    Originally posted by @Steven Westlake:

    @Genny Li- agreed, our wedding opinion does not matter much,

    I’m also giving some thought to just making it our personal house, lots of mature trees, a full acre lot, 2100 sq ft, sell the Houston house, that bumps us from 1700 to 2100 sq ft , and a 6200 sq ft lot up to 42560 sq ft lot. No water bill, taxes would drop 75%, and no more mortgage. Plus our 6 rentals are near here.

    That would basically be a barndominium conversion, then?  If the toilets don't pass the ADA test, I would definitely go that route.  ADA kills so many commercial remodels. :(  I mean, I get why it's needed, but even what passed the rules in 1985 won't pass the rules now--they keep changing.  If you have a high-value business, it's no problem, but for more modest businesses, it locks them into their current state.

  • Developer · Bellefontaine Ohio · Member since 2016 · 371 posts · 219 votes
    5y
  • Developer · Bellefontaine Ohio · Member since 2016 · 371 posts · 219 votes
    5y

    Here’s kinda what we’re thinking.

  • Ronald RohdePro Member
    Attorney · Dallas, TX · Member since 2016 · 5k+ posts · 2k+ votes
    5y

    going all in! That town is about 13k people, are you going to draw from a larger area? online reviews and glam photos + reviews. I can see this working if you get a theme and online reputation.

  • Baltimore, MD · Member since 2018 · 431 posts · 281 votes
    5y

    That's fine for ADA as long as you have the clearances under the sinks and that is cheap to fix if not!  Just not sure if you actually need more stalls for the occupancy. 

    The kitchen isn't up to new codes for commercial. Everywhere is now requiring commerical hoods and hand-washing and the rest even in church kitchens. It's super stupid, I know. 

    For a home, that's going to be an easy conversion. Your concept looks beautiful. 

  • Deland, FL · Member since 2017 · 2k+ posts · 1k+ votes
    5y

    Make it into your own home 

    And DEFINITELY keep the urinal 

  • Developer · Bellefontaine Ohio · Member since 2016 · 371 posts · 219 votes
    5y

    All - wife and I, after some discussion about floor plans and styles, are converting it to our personal home.

     Fyi, the discussion went like this, she said I want a wrap around porch, grey siding with white trim, bigger windows, french doors, stainless appliances, black barn doors and shutters, etc., after which I put my foot down hard and said “dark grey or light grey siding?” Haha 

  • Developer · Bellefontaine Ohio · Member since 2016 · 371 posts · 219 votes
    5y

    @Michael Plante - the urinal gets promoted to the garage

  • Bellefontaine, OH · Member since 2021 · 2 posts · 0 votes
    5y

    @Steven Westlake Hello Steven I am just getting started with investments, and I live in Bellefontaine, if I can help in any way please let me know.

  • Developer · Bellefontaine Ohio · Member since 2016 · 371 posts · 219 votes
    5y

    Paul Newland - thanks for reaching out. What are you looking for?

  • Bellefontaine, OH · Member since 2021 · 2 posts · 0 votes
    5y

    @Steven Westlake looking at all our options at the moment , in process of getting a heloc to start either SFH or Brrrr..

  • Developer · Bellefontaine Ohio · Member since 2016 · 371 posts · 219 votes
    5y

    Paul newland  - love the brrrr, if you buy fixers, often can pull out every dime and then some. 
    Watch the heloc, the bank can retract them, without much notice.

  • Developer · Bellefontaine Ohio · Member since 2016 · 371 posts · 219 votes
    5y

    Anybody got any ideas on how to get a closing pushed thru faster? I have cash for the above property and can not get these folks to push the paperwork through.

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