Buy & Hold Condotel units

[Graham Glover]

I've recently come across a deal for 2 units in a condotel complex. I was wondering if all of my BP friends could give their opinions about these types of ventures. To me, it seems like an interesting niche. The main renters are traveling professionals who typically stay shorter periods (I.E. 1-3 month leases).

I can see the obvious cons, but I was hoping you guys could maybe fill me in on the not so obvious ones. Also, what are some of the upsides that I might be missing.

Lastly, I am trying to come up with some creative ways to finance this deal. The seller seems motivated, but I wouldn't say she is very motivated. Would it make more sense to try to buy subject to current financing even though the owner will be selling for a profit? Is it possible to work out a deal where the buyer can owner finance the profit to the seller overtime?

Questions, thoughts, criticisms?