All Forum Posts by: Daniel Rogers

Hey Seth, thank you for the reply.

The only thing that worries me is that since it is a motel conversion and I am providing utilities with the rental agreement, the bank will want a more thorough analysis on the costs throughout the year because of the varying rates. I see that you recommend a full quarter of records to offer to the bank, do you think that would be sufficient, even given the varying costs throughout the year?

This is just for clarification, I don't mean to make you double state your previous entry.

Thanks,

Dan

Hey everyone,

I am looking at a deal in Northern Michigan, I'm in love... 

22 unit motel that I am going to convert into studio apartments. The problem with that is that it has no proven cash flow history. Also, it may be a variable that it is master metered, so utilities will be included.

My question is, how long do I need to rent out a property before a bank has enough financial data to refinance the property to pay back my private lenders? Since I cover the costs of utilities, and there are large variances between the costs during winter and summer months, will that play a role? I have heard anywhere between 90 days and a full calendar year. What do you think?

Thanks,

Dan