Anyone successfully convert a motel to efficiency apartments?
I live in a county just outside of Asheville NC, and my wife and I have 5 long term rentals and 5 short term rentals, and we are looking to scale our real estate business. Affordable rentals are in short supply in the area with the average 1 bedroom running $1200-1500. There is a motel for sale that is in a very good location, current zoning allows for hospitality or multifamily residential, and has good size rooms. The area has loads of tourism 9-10 months of the year, lots of service-related jobs, etc. Rooms are large and currently have a 1 or 2 beds, mini fridge, microwave, and sitting area, and I would keep a similar set up, maybe adding a full size fridge and small table with chairs. I am estimating rents at $850-900 month on these type units. It is in current operation, so everything is in good, working condition. The property backs up to a creek and has room for grills, picnic tables etc. There is a nice rv park on 1 side that has primarily year-round renters. RV sites rent for $750-850/month. Here is the analysis I ran based on expenses provided by the motel and increasing the utilities by 50% to allow for full time occupancy. Thanks for any insight/pros/cons/etc.