Looking for Advice on Pricing a Unique Hotel/Motel Property

[Patrick Martin]

A few years ago, I purchased an old hotel/motel property with four separate buildings. I’ve since fully remodeled the old motel rooms, which now include a mix of studio, one-bedroom, and a couple of two-bedroom units.

Right now, I’m bringing in around $19,000/month in rental income.

• Property taxes and insurance run me about $16,000/year.

• Utilities are averaging about $3,000/month.

One of the buildings is an older house that was part of the original motel setup. It’s partially remodeled and has new wiring, but it still needs quite a bit of rehab. It definitely has potential, but I just don’t have the interest or time to finish it.

I’ve had someone ask me a couple of times if I’d be willing to sell, and while I’m open to it, I’m having a hard time figuring out how to price a property like this. It’s unique, and I’m not sure how to properly value the income side versus the rehab needed for the house.