Turned a shuttered and rundown 13-unit waterfront motel into a brand new vacation destination with added lakefront "tiny homes". Property has no "on-site" employees with exception of cleaning staff. Customers book and manage everything online and we use a property manager for Q&A and handsfree management. No on-site office, nearly autonomous functionality. Several large Georgia State tax breaks were also part of the deal. Yearly Gross $500k+ with cash flow of approximately $30k-$35k/mo.

What made you interested in investing in this type of deal?

This was one of only three hotel/motels in the city and the only one with lakefront access, including a dock. Popular year around 4-season activity area on the 2nd largest lake in Georgia. Property was just a good combination of the "right place and right time."

How did you find this deal and how did you negotiate it?

I found this deal by "stumbling" on it during a weekend get-away trip with friends for a celebration on another property. I like to make a celebration part of the end of every successful project and this celebration brought us through this area. The "For Sale" sign and phone number were posted on the front of the building, nowhere else. It was not listed. My business partner spent over six months negotiating with the seller and we ultimately purchased at a 20% reduction from asking price.

How did you finance this deal?

This deal was financed through three funding rounds over the approximate 18-month time frame for the renovation and construction of new tiny homes. Investors, (two of us) ultimately funded about 32% of the project with cash and additional money was raised from members of the local REIA, simply by word of mouth.

How did you add value to the deal?

The deal was valued based on a recent sale of the local Holiday Inn, (only real competition for us) which also needed to undergo renovation. We also did many calculations of income and expense models over time, based on usage.

What was the outcome?

The 13-unit original motel, built in 1958, has been completely renovated to 2023/2024 standards and upgraded with all new electrical, plumbing, and internet structure throughout. The six tiny homes were build from the ground up to our specs. The project was very well received by this small town and it is a fully operational 20-unit, lakefront, property in a wonderfully busy four-season destination.

Lessons learned? Challenges?

No matter how much vetting you do, you will always run into contractor issues. Being remote for us, this was a big hurdle, which we eventually overcame. Traveling back and fourth from Florida was a bit taxing, but ultimately it was worth the investment and work.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

No. This deal was completely done off-market.