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Updated about 8 years ago on . Most recent reply
![Jesse Chunn's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/510162/1621480206-avatar-jessechunn.jpg?twic=v1/output=image/cover=128x128&v=2)
Advice on a Super 8 Motel Please...
I wonder if someone with some hotel/motel experience would be willing to spend 3 minutes looking at the Super 8 Motel in the link below and tell me what they think? I am considering moving to the area where this is located (Hazen AR, also known as the middle of nowhere). I have zero experience with any kind of commercial real estate but I am just curious if this might be something to generate some cash flow while I do some SF flips and rentals. I don't know the technical terms, but basically I would be the "owner/operator" but would not work on site. I would be off doing flips and SF rentals during the day and check in on the motel from time to time. I would, I presume, hire a solid manager and relatively low-wage cleaning staff (other staff?). I hope I don't sound too awfully ignorant. I am roughly guessing I could easily net around 50k or so after all expenses, assuming a 60% occupancy, leaving me room to improve occupancy and get that number up above 100k or more (after loan service, 30% down). I did a basic analysis using tools meant to analyze MF apartment deals, so I probably missed some things. Anyway, I hope someone with some experience will enlighten me on some of the things to look for and whether this even looks workable. It seems like it could be. Here is the link:
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![Hadar Orkibi's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/625572/1621494084-avatar-goforcashflow.jpg?twic=v1/output=image/cover=128x128&v=2)
@Jesse Chunn, I would consider the option of buying the building and leasing it out to an operator. Then you are basically a commercial landlord and not business owner. the hospitality business is not as glamor as it looks.
The option of putting a manager in place is also relevant, But expect to be involved! getting good staff is alway a hassle and keeping them up to your standard. then you need to deal with customer complains etc etc.
See if you can get it under contract and lease the business out with 10-20 or even 30 years leases.
the tenant operator will pay all outgoings (Triple Net Lease) and take care of the building for you.
Once its under contract try the local chamber of commerce or motel association they may know of local business owner looking to expend. or try local business broker they maybe able to sell the Business only as going concern while you keep the building.
Good luck!