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

    So yet another call to the law firm, second one today.

    Maybe I’m a little suspicious but the office manger keeps telling me the lawyers are in meetings or taking days off and never returns my calls.

    Then today they say the seller owes them something. That’s the hold up.

    When I say great, tell me what they owe you, and give me their phone number, and I’ll start bugging them instead. After saying this 3 times and not getting an answer, suddenly the sellers are calling them and they need to answer right away, and hang up on me.

    Does that sound like BS to anyone else?

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

    Law firm now seems to be marching forward, so thats good news.

    Now for the next hiccup, spoke with the health department today, they are saying the entire septic system will need to be replaced because of a change of use. So i called a guy who does that and he says thats 11 or 12k$.

    As i have not closed can i use that to renegotiate the selling price, any thoughts?

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

    Does anyone know if these online  auction sites are locked in stone? It said “private well and septic”, but the health department says the septic can not used for a single family home. It had this printed in it 

     “A great opportunity to purchase a property with unlimited potential. Buyers responsibility to check with local codes and zoning regulations if they intend on changing use of property.”

  • Developer · Bellefontaine Ohio · Member since 2016 · 371 posts · 219 votes
    4y

    Got everything signed and got the keys today. It’s amazing how little paperwork is involved when your paying cash.

    Started the clean out, tossed about 30 mops out, just thought it was weird to have 30 mops.

    Must be about 100 folding chairs and a dozen folding tables.

    Changed the locks, and sprayed for stink bugs and spiders. More cleaning tomorrow.

  • Developer · Bellefontaine Ohio · Member since 2016 · 371 posts · 219 votes
    4y

    Over filled a 2 yard dumpster, gave away 2 tables, and about 1/2 a truck load went to the local historic group. Lots of pressure washing, trimming trees off the roof, lower branches to help with mowing. Removed lots of curtains, trim and miscellaneous like a peg board.

  • Developer · Bellefontaine Ohio · Member since 2016 · 371 posts · 219 votes
    4y

    @Paul Newland - we’re in, so if you’d like to come by and see what we are doing, white cars with Texas plates.

  • Suffolk, VA · Member since 2021 · 54 posts · 33 votes
    4y

    @Steven Westlake sounds like you may be going the bardominium route but w/regard to the event hall idea - our church currently rents a facility somewhat similar.  $500 for 4 hours every Sunday morning (so $2000-2500/month) and its basically on a month to month lease so not much turnover to deal with from the landlord perspective.  I think during the week the facility is rented for things like summer camps and concerts so maybe a bit more work then.  Hope that helps!

  • Real Estate Agent · Atlanta, GA · Member since 2014 · 11 posts · 4 votes
    4y

    As a current owner of an event facility in Roswell, Ga I can tell you it takes full time mgt.  We own the real estate and the operating company, and running an event facility in the covid era is challenging. On the other hand, at 250 all in, acting as landlord to an event mgt company looks more promising to me.

  • Developer · Bellefontaine Ohio · Member since 2016 · 371 posts · 219 votes
    4y

    @Tyler McDonald - we may have found a compromise solution, i spoke with folks across the street who already have an event hall. They have a part time need for a dressing area for weddings. And we’ll have extra bedrooms at approximately 16 x 16 each, which will have outside doors. They have the bulk of the headaches.

  • Developer · Bellefontaine Ohio · Member since 2016 · 371 posts · 219 votes
    4y

    @David Bailey - see Tyler reply, also we can rent out tables and chairs.

  • Suffolk, VA · Member since 2021 · 54 posts · 33 votes
    4y

    Thats an awesome (and creative) solution.  Hope it all works out!

  • Developer · Bellefontaine Ohio · Member since 2016 · 371 posts · 219 votes
    4y

    @Tyler McDonald - today we donated lots the of dishes and cups, lunch trays to the local Lutheran center.

  • Developer · Bellefontaine Ohio · Member since 2016 · 371 posts · 219 votes
    4y
  • Developer · Bellefontaine Ohio · Member since 2016 · 371 posts · 219 votes
    4y
  • Developer · Bellefontaine Ohio · Member since 2016 · 371 posts · 219 votes
    4y

    Lots of tree pruning, pressure washing, and painting today. Bug spray bombed during the hours we (wife, oldest grandson and myself) went to my mothers 81st birthday party today.

  • Developer · Bellefontaine Ohio · Member since 2016 · 371 posts · 219 votes
    4y

    Painting the smaller meeting room today.

  • Developer · Bellefontaine Ohio · Member since 2016 · 371 posts · 219 votes
    4y

    Wife Painted front door from blue to white, added a wreath and solar light.

  • Developer · Bellefontaine Ohio · Member since 2016 · 371 posts · 219 votes
    4y

    Started painting inside, Monday and Tuesday. 
    Drove back to Houston Wednesday and Thursday.

    Drove to a wedding Friday, car through fit, rode 100 plus miles back to Houston in a minute ow truck, missed wedding, thinking motor is toasted, it just turned 50k miles Wednesday, but it’s a 2015 Honda so the 5/60 is timed out. Dealer has no loaner cars. Thankfully turo did have.

    So now we’re packing the Houston house.

  • Developer · Bellefontaine Ohio · Member since 2016 · 371 posts · 219 votes
    4y

    Closet removed, from above first two pics

  • Developer · Bellefontaine Ohio · Member since 2016 · 371 posts · 219 votes
    4y

    3 to 4 days of packing the Houston house so far. Man we got a lot of stuff. It’s amazing how much stuff 12 years in this place has gained.

  • Developer · Bellefontaine Ohio · Member since 2016 · 371 posts · 219 votes
    4y

    Still packing Texas house. Then flying to Ohio to drive my truck back to tow wife’s crv to Ohio. Wandering how i got anything done back when i had a W2 job. Fyi we have 2 of our rentals being remodeled about 2 miles from this place as well.

  • Marc RiceBusiness Member
    Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2018 · 2k+ posts · 1k+ votes
    4y

    @Steven Westlake

    This seems like a management intensive business without much standard operating procedures already out there.

    Marc Rice | Investor Friendly Agent at Reafco Tailwind Team574 Reviews
  • Developer · Bellefontaine Ohio · Member since 2016 · 371 posts · 219 votes
    4y

    @Marc Rice - that seems to be an accurate assessment, and I’d fire the fat old guy who’s responsible, but I’d miss me.

  • Developer · Bellefontaine Ohio · Member since 2016 · 371 posts · 219 votes
    4y

    Fyi, I learned something new today when searching for our properties on the county auditors website, one was missing when i search by our last name. Then i searched by address and it came right up. Turns out they swapped my first and last name around in the computer. I called and they said they would fix it.

     Also if you plan to use Estes to move stuff, allow 2 weeks now a days. I thought a week was enough, i was wrong.

  • Developer · Bellefontaine Ohio · Member since 2016 · 371 posts · 219 votes
    4y

    New walls and closet going up

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