Thinking about buying an old elementary school-turn into hostel

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Thinking about buying an old elementary school-turn into hostel

Aaron T.Pro Member
Developer · Aguada, PR · Member since 2014 · 927 posts · 278 votes

I am looking at an elementary school that has been abandoned. I am thinking I can turn classrooms into several small pods or rooms like a hostel. put in a pool and some nice common areas to make it kind of a pod resort or hostel resort. 

I would be interested if anyone has seen anything like this or has thoughts of why its a bad idea, or things to think about as I day dream. 

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Lauren Kormylo
Rental Property Investor · Phoenix, AZ and Rehoboth Beach DE · Member since 2019 · 1k+ posts · 1k+ votes
5y
I've stayed at this B & B, a former schoolhouse in Bisbee AZ.  Each of the rooms has a name, and decor is themed - the Principal's Office, the Reading Room, Arithmetic, History, etc.   https://www.hotels.com/ho61750...
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  • Aaron T.Pro Member
    OP
    Developer · Aguada, PR · Member since 2014 · 927 posts · 278 votes
    5y
    2Reply
  • John UnderwoodPro Member
    Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
    5y

    What would be the draw for someone to want to stay here?

    5Reply
  • Paul Sandhu
    Investor · The worst town to live in, KS · Member since 2016 · 4k+ posts · 4k+ votes
    5y

    People that have money generally don't like to share living spaces with strangers.  People on a budget (hippie college students) don't mind sharing space but they usually have limited discretionary income.

    You could make it into a Safe House, like that hotel in the John Wick movies.  I'm not sure how large of a market this is though.

    2Reply
  • Lauren Kormylo
    Rental Property Investor · Phoenix, AZ and Rehoboth Beach DE · Member since 2019 · 1k+ posts · 1k+ votes
    5y
    I've stayed at this B & B, a former schoolhouse in Bisbee AZ.  Each of the rooms has a name, and decor is themed - the Principal's Office, the Reading Room, Arithmetic, History, etc.   https://www.hotels.com/ho61750...
    11Reply
  • Thomas Ackley
    Rental Property Investor · Milwaukee, WI · Member since 2017 · 21 posts · 12 votes
    5y

    This sounds like a passion project and not an incoming generating project.

    Without looking at the numbers, I would imagine you need an absolute cheat in one of the areas for this to make sense, monetarily. You'd need to acquire this for a steal, or be able to do the rehab for almost free or know you can charge a lot in the end. 

    The end result sounds amazing, but what do you think the purchase price would be? How much would it cost to renovate the common areas of the facility, how much for each room, how much can you rent each room out for and how often can you rent them out?

    4Reply
  • Michael BaumPro Member
    Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
    5y

    Hey @Aaron T., that sounds like a cool project to me. Where is it located?

    I have always wanted to buy an old school like that. I am not really sure why. It just seems like a cool thing. The only problem is that anything that makes sense financially is in the middle of the country in small towns. Like Indiana or Illinois.

    What is the purchase price on the place? How many sqft?

    Things that really matter in a building like this are the roof and the HVAC. Both can be very expensive to refurbish if needed. Easily exceeding the purchase price of the place.

    How many acres? Can you build additional buildings or are there other buildings on the property? Maybe you could turn something into a store and/or light service restaurant. What other amenities are close by? Things to do?

    Give us the deets man!

    4Reply
  • Aaron T.Pro Member
    OP
    Developer · Aguada, PR · Member since 2014 · 927 posts · 278 votes
    5y
    Originally posted by @John Underwood:

    What would be the draw for someone to want to stay here?

     It’s a half mile from the beach. Big surf community. 

    thinking a pool in the center area and then have good outdoor common areas. 

    8Reply
  • Aaron T.Pro Member
    OP
    Developer · Aguada, PR · Member since 2014 · 927 posts · 278 votes
    5y
    Originally posted by @Michael Baum:

    Hey @Aaron T., that sounds like a cool project to me. Where is it located?

    I have always wanted to buy an old school like that. I am not really sure why. It just seems like a cool thing. The only problem is that anything that makes sense financially is in the middle of the country in small towns. Like Indiana or Illinois.

    What is the purchase price on the place? How many sqft?

    Things that really matter in a building like this are the roof and the HVAC. Both can be very expensive to refurbish if needed. Easily exceeding the purchase price of the place.

    How many acres? Can you build additional buildings or are there other buildings on the property? Maybe you could turn something into a store and/or light service restaurant. What other amenities are close by? Things to do?

    Give us the deets man!

    this is in Puerto Rico. Buildings are all concrete and concrete roofs. Sits on a couple acres. And you can build more structures.  .5 mile from popular surf beaches. 

    Thinking it could be kind of a chill str resort. Do up the landscape nice, some amenities, and pool. 

    5Reply
  • Michael BaumPro Member
    Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
    5y

    Ahhh @Aaron T., that is interesting. Puerto Rico is someplace that I don't know much about. Still, it sounds like a neat project, but it could get expensive real quick.

    0Reply
  • Aaron T.Pro Member
    OP
    Developer · Aguada, PR · Member since 2014 · 927 posts · 278 votes
    5y
    Originally posted by @Thomas Ackley:

    This sounds like a passion project and not an incoming generating project.

    Without looking at the numbers, I would imagine you need an absolute cheat in one of the areas for this to make sense, monetarily. You'd need to acquire this for a steal, or be able to do the rehab for almost free or know you can charge a lot in the end. 

    The end result sounds amazing, but what do you think the purchase price would be? How much would it cost to renovate the common areas of the facility, how much for each room, how much can you rent each room out for and how often can you rent them out?

     Passion, not really. Just something I ran across and asked myself what could be done with it. 

    0Reply
  • Aaron T.Pro Member
    OP
    Developer · Aguada, PR · Member since 2014 · 927 posts · 278 votes
    5y
    Originally posted by @Lauren Kormylo:
    I've stayed at this B & B, a former schoolhouse in Bisbee AZ.  Each of the rooms has a name, and decor is themed - the Principal's Office, the Reading Room, Arithmetic, History, etc.   https://www.hotels.com/ho61750...

     Thanks for the link. We have a brewery here in Colorado Springs where they turned it from a school into a brewery. 
    http://ivywildschool.com/

    4Reply
  • Aaron T.Pro Member
    OP
    Developer · Aguada, PR · Member since 2014 · 927 posts · 278 votes
    5y
    Originally posted by @Michael Baum:

    Ahhh @Aaron T., that is interesting. Puerto Rico is someplace that I don't know much about. Still, it sounds like a neat project, but it could get expensive real quick.

    We have a Airbnb not far from this location already.  

    1Reply
  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    5y

    I think it could be neat, but I'd run the numbers. You could also do self contained units with simple kitchens.

    2Reply
  • Michael Ablan
    Real Estate Broker · Watertown, NY · Member since 2016 · 1k+ posts · 1k+ votes
    5y

    @Aaron T. Becareful of asbestos and losing any grandfather protections from doing any significant gutting. You could get sunk instantly if you were forced to do a proper abatement

    7Reply
  • Ramon Morales
    Specialist · FL · Member since 2018 · 18 posts · 19 votes
    5y

    @Aaron T.

    I love hostels. I actually worked at a hostel for 10 years. Started as a front desk agent/bartender and worked my way up to general manager.

    Covid is the only thing that would worry me but other than that, in the right location, a hostel can be extremely profitable. My company would convert hotels to hostels every year since 2016.

    A decent low cost breakfast, luggage storage, safety boxes, daily activities such as bar outings, outgoing staff to engage with the guests, and a good cleaning department will have you as top hostel on Hostelworld in no time.

    Policies in place like “proof of forward travel” will do wonders in allowing you to maintain a travelers ambiance amount your visitors. Our hostels had a “travelers only/no locals” policy for the accommodation side but the locals were absolutely welcomed at the bar/restaurant.

    It’s all about the ambiance, good vibes among the coolest of travelers.

    Please feel free to connect if I could be of any insight.

    8Reply
  • Paul Sandhu
    Investor · The worst town to live in, KS · Member since 2016 · 4k+ posts · 4k+ votes
    5y
    Originally posted by @Aaron T.:
    Originally posted by @John Underwood:

    What would be the draw for someone to want to stay here?

     It’s a half mile from the beach. Big surf community. 
     

    You have a gold mine.  Go for it. 

    My gold mine is in my town.  I buy bank foreclosures for about $10k and rent them out as STRs to refinery contractors for $400-$600 a week.

    3Reply
  • Zachary Ray
    Investor · Tampa, FL · Member since 2017 · 589 posts · 251 votes
    5y

    Great idea. My thought would be check all the licenses and rental agreements you would need to function as a hostel just to make sure nothing on that end will stop you or break the bank. Construction might be a little on the high end but I'm sure you already ran those numbers. Best of luck to you. 

    1Reply
  • Aaron T.Pro Member
    OP
    Developer · Aguada, PR · Member since 2014 · 927 posts · 278 votes
    5y
    Originally posted by @Michael Ablan:

    @Aaron T. Becareful of asbestos and losing any grandfather protections from doing any significant gutting. You could get sunk instantly if you were forced to do a proper abatement

    Buildings on the island are all concrete structures. I dont think we will run into much asbestos in there. 

    1Reply
  • Aaron T.Pro Member
    OP
    Developer · Aguada, PR · Member since 2014 · 927 posts · 278 votes
    5y
    Originally posted by @Zachary Ray:

    Great idea. My thought would be check all the licenses and rental agreements you would need to function as a hostel just to make sure nothing on that end will stop you or break the bank. Construction might be a little on the high end but I'm sure you already ran those numbers. Best of luck to you. 

    Everyone in PR has a palm up to collect money from you from SJU to the municipality. they will get theres. construction down there is not as expensive as the states. some things are higher and lower.
     

    1Reply
  • Aaron T.Pro Member
    OP
    Developer · Aguada, PR · Member since 2014 · 927 posts · 278 votes
    5y
    Originally posted by @Ramon Morales:

    @Aaron T.

    I love hostels. I actually worked at a hostel for 10 years. Started as a front desk agent/bartender and worked my way up to general manager.

    Covid is the only thing that would worry me but other than that, in the right location, a hostel can be extremely profitable. My company would convert hotels to hostels every year since 2016.

    A decent low cost breakfast, luggage storage, safety boxes, daily activities such as bar outings, outgoing staff to engage with the guests, and a good cleaning department will have you as top hostel on Hostelworld in no time.

    Policies in place like “proof of forward travel” will do wonders in allowing you to maintain a travelers ambiance amount your visitors. Our hostels had a “travelers only/no locals” policy for the accommodation side but the locals were absolutely welcomed at the bar/restaurant.

    It’s all about the ambiance, good vibes among the coolest of travelers.

    Please feel free to connect if I could be of any insight.

    Ramon, thanks for the tips. I will drop those in my one note. 

    Covid won't last forever. once they realize its government controlled. 

    I am thinking this area would be to the surfer crowd and those that are looking to pass through the area and not looking for a full blown hotel. 

    I stayed recently in this cool little place. its a like a hostel, but has closed and locked rooms. these are roughly 5x7 rooms with bunks. imagine putting 4-9 of these pods in each of those class rooms in the school. 

    5Reply
  • Codie Fisher
    Lender · Oklahoma City, OK · Member since 2020 · 3 posts · 0 votes
    5y

    @Aaron T. Looks like a fun project!

    0Reply
  • Andies Shepherd
    Rental Property Investor · Austin, TX · Member since 2017 · 14 posts · 12 votes
    5y

    @Ramon Morales

    This should get like a million up votes!

    2Reply
  • Kent Leach
    Specialist · Knoxville, TN · Member since 2012 · 66 posts · 59 votes
    5y

    Aaron, not sure if Puero Rico gets access to Federal Tax Credits or not but I'm doing a LIHTC deal in Tennessee where we are converting an old furniture store to 42 units. My architect is converting a old high school into 38 units. People will live in it and the government may help you do it!

    1Reply
  • Dustin L. Jones
    Flipper/Rehabber · Pittsburgh, PA · Member since 2020 · 13 posts · 5 votes
    5y

    @Aaron T.

    Sounds like a coolproject man, I’m digging it.

    0Reply
  • Peter Tomeczko
    Real Estate Broker · Elmwood Park, IL · Member since 2020 · 55 posts · 32 votes
    5y

    @Aaron T.

    My wife and I stayed at a school converted into an air b&b. It was interesting, cool, weird and we would prob do it again. Each room got a skeleton key, breakfast delivered, separate bathrooms and vintage decor. The owner was very nice. Reach out to him. He might be able to give you some advice.

    https://www.davieschoolinn.com

    Best of luck!!

    2Reply
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