Summer especially can bring in great revenue, especially if you’re close to the beach or have a view.

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.

ive partned with international people on flips locally

The market here had one of the highest rental yields globally in 2024 and continues to attract both seasoned and first-time investors internationally.

The Internal Revenue Code permits business deductions only when the taxpayer is engaged in a bona fide profit-seeking activity.

Know that the $37,000 on AirDNA is the gross revenue, which includes cleaning fees. 

When it comes to structuring a deal, most developers focus on the capital gap — but lenders focus on readiness.Over the last few years, I’ve noticed that deals move faster (and get better terms) when the borrower has a clean due diligence stack ready before approaching mezzanine or bridge lenders.Here’s a quick checklist we use internally before structuring mezzanine capital between $1M–$100M+ :✅ Updated project financials✅ Detailed pro forma with realistic DSCR assumptions✅ Rent roll or trailing 12-month P&L✅ Capital stack breakdown showing senior + subordinate layers✅ Clear exit or refinance planHaving these ready builds lender confidence and speeds up funding timelines.💡 Curious — for those of you who’ve raised mezzanine or bridge capital recently:What’s one document or metric lenders focused on the most during your due diligence?

Whether it’s property management, bookkeeping, or tax preparation, the time spent on those tasks is time taken away from revenue-generating activities.

I’ve noted a far steeper drop in revenue this year for my Gatlinburg cabin compared to the drop last year.  

If you are not building/rehabbing in locations that can easily absorb today’s construction costs, focus on assets where operational tweaks can generate revenue.