Any advice for a purchase of a Bed and Breakfast

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Any advice for a purchase of a Bed and Breakfast

Matthew Putnick
Chicago, IL · Member since 2014 · 37 posts · 6 votes

Does anyone have an experience with owning or managing a bed and breakfast?  My wife and I are looking to start this type of business and would love to speak with anyone with experience. 

We current own rentals and do Flips but this type of investing would be brand new for us. 

Thanks.

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  • Chris SeveneyBusiness Member
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    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    11y
    I have not owned one but know of someone who did and it was a lot more work than they anticipated. It's like running a hotel and restaurant at the same time and can be overwhelming. If your looking toanage it yourself it is a lot different and more worm than a typical investment property. Also since they rely strongly on reputation and word of mouth, they had to be heavily involved as the help/workers typically are not paid well and need to be trained to build your brand
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  • Matthew Putnick
    OP
    Chicago, IL · Member since 2014 · 37 posts · 6 votes
    11y

    Thanks Chris - this is very helpful.  I totally agree that a strong reputation is extremely important.  One of the aspects we were trying to figure out was occupancy rates.  

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  • Pat L.
    Rental Property Investor · Upstate, NY · Member since 2012 · 3k+ posts · 3k+ votes
    11y

    Not exactly the proverbial B&B concept but....

    We knew a couple of guys that had a large beautiful home & did the B&B. But after several years of hit & miss frustration they decided to convert it into retirement living for 4-5 active & 'with it' elderly ladies. I remember they were charging a lot for the full service 'classy' accommodations & did extremely well with a waiting list of several years. 

    Another woman we currently know gets over $5,000 a month for accommodating 5-7 elderly 'wards of the State', She has been doing it since 1993, & we know of her because we bought the large home she originally used & outgrew. The accommodations were very minimal/spartan given the income she received.

    We also have a fellow investor who rents rooms to fishermen & then snowmobile groups & has done very well but his properties are on or near the lake. 

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  • Matthew Putnick
    OP
    Chicago, IL · Member since 2014 · 37 posts · 6 votes
    11y

    Thanks for the info Pat.

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  • Helen Zhang
    Austin, TX · Member since 2016 · 160 posts · 39 votes
    10y

    How about try airbnb first to see if you really like doing it?

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