Motel conversion to long-term rental

[Brent A Fewell]

I'm curious if anyone has any experience in converting motels to long-term rentals.  I have opportunity to purchase a 44 unit motel that needs major rehab, likely $1.2M or more ($20K+ per room). After rehab and based on studio rental comps finished studio rooms would likely get $1,200 per month.  Seller is asking $800K, but based on my calculations, I can't see paying more than $250K.  Would welcome any advise on whether this is a bad or good deal.  Appreciate any thoughts. 

Brent