How to Value a Motel - Denver Colorado

[Adrian Tilley]

Hi,

I have a lead on a 28 unit motel near Denver Colorado (actually in Commerce City).  It's in rough shape, but the owner states that the units stay rented.  They are about half 1/1 and half studio, all with kitchenettes.  Apparently the studios rent for 800/month, and the 1/1's for 850/month, or they rent for 220/week.  Apparently most of the tenants have been there for years.  I've never heard of this model.

I have an asking price from the owner, but I have no idea how to evaluate.  Does anyone have any knowledge in this area, or if you're local, does anyone have a connection who may be interested in partnering on or purchasing this deal?  If I can make it work, I would be happy to just flip this property.

thank you,

Adrian