Hotels charge $40/gallon just for coffee.

Hi BiggerPockets members I have this deal presented to me to purchase this 221 units hotel that’s right off of a major highway with a full restaurant and extended stay suites and this was a high end one back in the day that hosted a lot of events with 4 banquet halls .

I am now in escrow for a hotel.

In our area a one bedroom voucher holder can afford a two bedroom rent, so the only people who rent one bedrooms are people living in weekly rent hotels - basically one step away from homeless. 

@Coleman Nelson  I have used Craig Miller, CPA of Duffy & Duffy for some larger cost segregation projects in the Hotel industry and Multi-Family arena.  

Columns Hotel- for an elegant, peaceful night of cocktails... they sometimes have great live music- depends on the night. 

I think how you optimize is determined by the tenant base that exist in the area you want to own in and eviction laws.I have also seen a variation where the landlord collects weekly almost like a hotel.

AIAArchitect contact info:this is just a snipped of what my great agent sends me once we are in contract.. but this came to me on Wednesday when I was in my hotel room in Detroit and now we are in contract.. this will be a 2 million dollar spec.. this is how the business works.

IE you have 1 bedroom of 3, then 1/3 of these indirect costs would be personal in nature, the rest business.One additional (major) item to keep in mind is that the short term nature of Air BnBs can be more akin to a motel/hotel (ordinary income), and not 'rental' income - ordinary meaning it could be subject to Self Employment tax if you end up showing a profit. 

Is there much of a profit margin available for converting old hotels into condos?