Hotel Conversion

[Trevor Haasch]

I have been approached with a deal to purchase an older vacant hotel. There are currently 6 apartments 22 hotel rooms and a 3 bedroom house on site. Purchase price would be 150k and needs about 200k in improvements. Seller is willing to finance entire deal at 5% interest. The more I look into it the more potential I see. It's located in a small town about 3 hours away. I just finished turning over a 33 unit apartment complex that is now 100% full. I have the experience and time to commit to turning this place around too. I spoke with the city this morning and found there is a housing need especially for transient workers during the summer and fall. Original plan was to convert entire place to studios or one bedroom rentals with 12 month leases but now after talking with the city I'm thinking converting the 2nd floor to long term rentals and the main floor to short term month to month furnished rentals. The city was really excited to hear we are interested in transforming the property and will work with us to rezone the property and possibly provide some financial assistance to help with improvements. Anyone have any experience with hotel conversions or short te rentals?