A few key things you’ll want to focus on are:RevPAR (Revenue Per Available Room) – the core metric for valuing operations.Occupancy trends and ADR (Average Daily Rate) – these drive your revenue projections.Expense ratio and management structure – smaller motels can run at 40–50% expenses, while flagged hotels can be much leaner with scale.CapEx and reposition potential – if it’s a rehab, understanding brand standards and conversion costs (for example, turning an independent motel into a soft-branded flag) can make or break the deal.My partner and I have underwritten several hotel/motel projects in the Los Angeles area, so I’m happy to share some insight into how we typically structure the analysis and what lenders look for in this space.

@Ziad Najjar We have a client with 85 doors (9 with pools) insured for $1m/$2m coverage for ~$22k/year.

If they are a NNN lease (they pay taxes, insurance, utilities, maintenance) then I would consider it.

This applies not just to a standard refinance, but especially to a cash-out refinance, where you are actually pulling money out of the property.

Looking to avoid home inspectors that do minimum standards of practice and's will check every single detail.

Quote from @Michael Nguyen: Some things that make a title company good are ones that have the ability to clear issues on the title and are going to insure the issues that might come up down the road are taken care of without you having to be on the hook.

We maintain properties at a high standard and ensure reliable, on-time payments.”That one sentence changes the conversation.

**OPERATING COST REALITY CHECK:**- Insurance: +29% YoY (coastal exposure + reinsurance crisis)- Maintenance: +24% (labor + materials)- Property Taxes: +22% (reassessments catching up)- Condo Fees: +45% since 2021 (SB 4-D structural compliance)**MARKET DYNAMICS:**- Luxury ($1M+): 10.2 months inventory, seeing 10% discounts- Single-family: 6.4 months, still climbing 4% annually- Condo/townhome: 12 months inventory (buyer's market forming)**CAP RATE SPREAD:**- Miami core (Brickell/Downtown): 4.7%- Suburban (Doral/Kendall/Homestead): 5.3%- 60bp spread = biggest arbitrage opportunity in years**INVESTOR BEHAVIOR SHIFT:**Seeing capital rotate from luxury spec plays → workforce housing with stable cash flow.

My Dad has a standard W-2 job, and my Mom works full-time in the long-term rental real estate business.

Assuming title, taxes, insurance are equal across the board overall costs would typically be about $1,250 in lender charges, appraisal maybe $700-900, credit report for $100.