Financing hurdles for a Motel Opportunity that fell in my lap

[Jason Riddick]

So yesterday I stopped by a client/friend to chat about a flooring project at his house and the discussion came up about a old motor court that he bought and fixed up on the beach and i said if you ever think about selling the place you talk to me first, just throwing it out there to him. he said he has been thinking about selling as he has too many projects out there as it is. he is a big local investor doing bigger projects. basically it comes down to it has about 500k in rentals each season, price in 2.9 mil, has had a major recent update, its ocean front, repeat business is through the roof, if fills a much needed niche that has been over looked in my community. (mostly huge vacation rentals here where you need 4-10 other couples to rent a giant beach home) while this is about 20 units, but it varies from 2 bedrooms to 4 bedroom cottage units so i has a little bit of everything. here is the awesome part, he does little to no advertising or anything, not even a good webpage just a infrequently updated facebook page and he pulls rentals like that. so there is definitely room for growth. I don't think there is much deferred maintenance but the units are old but i know everything about construction and such so Im not scared of the old part and own a flooring company, which is the best part cause thats the only thing the place needs is new floors/ interior paint. 

I have NO money to put down but would hate to invite an investor on board for the down payment (which will prob run 10-20% right? i have been looking to get into the game for a year but in an area where property values are inflated because of being a resort area its hard to find any cashflow properties. but running the numbers every such way its a really nice investment to get my feet wet and develop a vacation rental hospitality business that i could excel in while picking up valuable real estate in the process.

how would you tackle this loan wise? I dont have the hard details but first few years i would be on board for the most part developing systems and filling in the shoulder months with Air BnB and social media and trying to find the roof on prices for the main season. i know very little about commercial loans and options out there, with my rough math a 15 year loan at 5% would definitely be doable and would like to be aggressive in building a portfolio with a few of these types of investments as there are over looked opportunities here.