As mentioned this means the property can support itself and wont put me in a situation where I can cover debt, operating expenses or capital expenses.Annualized Return if Sold at the Five-Year Mark:This metric offers a comprehensive view of investment performance, blending both cash flow and equity.

Typical cosmetic (lifestyle) upgrades we do are better/more LED lighting, dimmers, flooring, paint, trim, solid wood door slabs in place of the hollow core etc.

I haven’t owned a motel operation but have hospitality finance background.

If they are paid off, then it really depends on the rent and operating costs.

@Zachary WurtzMy recommendation would be to contact geraci or doss law and work with them to create the docs you need and after explaining to them they can tell you what is best to use in the state you are operating in

You can still operate it within the LLC and get rental income on your personal tax return in a few ways. 

Call the cops saying they are running a drug operation and they get arrested.

I suspect there’s also a correlation between the lower eviction rate operators and longevity of operation, longevity of leases, reduced management/operational costs & greater appreciation.  

Any operators in this space that could give me some feedback based on their experience, where to focus?

Let me know if you need any recommendations or how I can help you build your CORE 4 with a strong realtor, contractor, property manager, and attorney.