I bought Schitts Creek.....I bought a motel, now what?!?!
Ok so I just bought an extended stay motel in Michigan......and I live in Utah.
How it happened: I was under contract on a single level 9 plex in a small industrial town in Michigan, I flew out for the inspection and we found mold all throughout the roof and the crawlspace. There were some other issues with the building as well so we decided to cancel the contract and fly home. While we were out driving around, we saw a small motel with a little for sale sign. We toured the property and went under contract the next day. The motel is 8 units plus a managers apartment, 5 of the units have kitchenettes and all units are rented on a weekly basis with most of them staying for 1+ month, and even have 2 tenants that have been there several years. Right now, the renters do not fill out any sort of application, they move in as soon as they look at the unit and move out on a moments notice. The units are fully furnished, including bedding and all utilities included. Does anyone have ideas on setting up a process for on boarding guests, part of why people are staying at a motel is not having an application process and getting to move in/out anytime they want. Most of the guests pay by the week, and right now 7 of 8 units are filled. I do have an onsite manager that collects rents and shows the units for discounted rent. He only pays $325/month.
For people interested in the numbers:
Purchase Price: $250,000
Rents when fully occupied are $5,500/month (most units rent for $175/week)
My monthly expenses are roughly $2000/month (working on lowering this buy buying the Water softener isnt of rent, switching the internet/cable company, and adding insulation in roof to lower my utility bills)
The best way to get started is to just get started, I dont have all the answers but it seemed like a good deal and a great learning experience! Any advise is appreciated