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Updated 8 months ago, 04/12/2024
Curious on financing small motel mid-rehab
I'm looking at a 30-ish room, two-story motel on a beach in a great area. It's been for sale for around a year or so, maybe more. The owner doesn't have the bandwidth to finish the renovation and has put it up for sale as-is, asking $2.5 million. It's been gutted to the studs inside, has a new roof, and has a pool (needs work plus a possible expansion), with room for new commercial buildings to replace the ones that were demolished or for an expansion of the motel with either more rooms or a few condos for short-term rental.
I'm considering selling a single-family home that I own outright in another state (Lake Havasu City, AZ) to finance this deal. It's worth around $450k & I'm not sure how long it'll take to sell in the current market.
Our immediate family (my wife, her dad, out daughter & I) are very handy and have experience in construction, HVAC, electrical, plumbing, etc, so we are anticipating being the general contractor and subbing out only those things we cannot do ourselves.
We have several STRs, but no motels. This place has great potential to be renovated into a unique, boutique motel.
How do I go about forecasting financials and exploring funding? I'm a software developer and very good with a spreadsheet and all, but I'm wondering if I could secure an experienced lender who not only can lend, but also provide advice on a deal like this from having financed similar situations before.
Pointers to financial calculators for such an endevour and hotel/motel renovation-style lenders & contacts appreciated.
Thanks,
Matthew