Buy old motel that's converted into multi-family units?

[Anna Christie]

There is a 16 unit motel that has studios, 1 & 2 bedroom units ranging from 250-450 square feet.

There is a 3/2 house 1350 Sq ft and a 3/1 house 1296 Sq ft. There is also a 1000 square foot shop for storage.

2020 gross revenue $91,000

2020 total expenses $43,000

Before tax net revenue 48,000

It needs a new roof sooner than later. It is easy access to freeway. Lots of room for improvement and increasing rents.

Is this a good deal? What are thoughts on converted motels? What questions should I ask? What potential problems do you see? Any advice or experiences you want to share are appreciated.

[Malcomb Stapel]

@Anna Christie what is the purchase price? Do you have the 2021 numbers? What are you factoring in for total expenses? Age of property and condition?