Help with deal analysis - roadside motel

[Crystal Davidson]

So I need help with an analysis on a potential purchase.   The seller is elderly, foreign and is not working with a broker, so a lot of the financial work is not done for me, or he just can't answer my questions.   I have tried to get as much information as I can.

Looking at a roadside motel on a major road in a rural area.   15 miles away is a medium-sized college campus, and it's within 45 minutes of a big NASCAR venue, but other than that it is NOT a tourist destination - just rural area known for hunting, fishing, hiking, etc.   The owner rents the rooms for $40 a night.   He doesn't advertise online (besides having an extremely basic Facebook page) and the place isn't even on TripAdvisor or Google Reviews.  His current occupancy is a measly 16.5% annually (meaning $70k in gross revenue).   Fixed costs are relatively low as it's an owner/manager situation now.  $9,000 annually in repairs, maintenance, taxes and other costs, $29,000 annually in utilities.

He paid $350,000 for the property almost 30 years ago.   His asking price is $225,000 and it's been on the market for a long while so I could probably get him to be creative or even take less.

My strategy would be to rehab the place from a 1 star to at least a 2.5 star motel, market it appropriately, and raise the average daily rate.  3 star hotels in the area have an average 54% occupancy rate (according to a local broker) and an average rate of $78.

I've never bought a hotel/motel before and I want to know if I should ask anything else important that I've missed or if anyone thinks it's a totally terrible idea and I should run away now.   I appreciate your time!