Motel conversion to long-term rental

[Brent A Fewell]

I'm curious if anyone has any experience in converting motels to long-term rentals.  I have opportunity to purchase a 44 unit motel that needs major rehab, likely $1.2M or more ($20K+ per room). After rehab and based on studio rental comps finished studio rooms would likely get $1,200 per month.  Seller is asking $800K, but based on my calculations, I can't see paying more than $250K.  Would welcome any advise on whether this is a bad or good deal.  Appreciate any thoughts. 

Brent 

[Katie Miller]

Hey Brent! Not experiences in motel conversion (sounds interesting though!) but wanted to reach out and say hi since nobody has responded yet.

Here are some tips for networking and making the most of your account... and hopefully get more responses in the future!

1) I'd fill out your profile fully before you do anything else! As that will at least help folks that you reach out to know that you are a real person, with a picture and professional bio. Particularly be sure to include your goals for real estate investing so that folks can help you.

2) Go to the Search bar, and look for some local members in your area where the motel is! Reach out to a few of the folks, perhaps those with hundreds or thousands of posts in this forum, and connect. You can do that here.

3) Check out some of the local meetups that you can find in this forum! There are so many so be sure to filter by your location.

4) Review this comprehensive 64 page deck on the state of the 2023 housing market (in your resource page as a member of BiggerPockets!) for real estate investors put together by Dave Meyer and available for all BiggerPockets members.

5) Consider meeting with a few agents in your area even if you are just getting started! An investor friendly agent can do all sorts of helpful things, like setting you up with a search for properties or connecting you with folks who have recently done deals like the ones you want to do.

Hope this helps! Please reach out with any questions you may have!