Why Motel Hotel To Apartment Conversion Is Hot Real Estate
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- čas přidán 18. 02. 2021
- An extremely short supply of multifamily real estate for sale has prompted investors to consider the motel hotel to apartment conversion transaction. If you own hotels or motels and are considering selling, please email me at beau@beaubeery.com.
In this video, we'll cover 5 reasons why motel & hotel to apartment conversions are a great idea and we'll review 10 things to look out for when considering this investment option.
Let's define the difference between a hotel and a motel. They differ in layout and construction. Hotels can contain hundreds of rooms and several floors; they generally have staircases, elevators, and internal corridors that lead to the rooms. Extended stay hotels are the most ideal conversion prospects due to larger floor plans (400+ SF) and larger kitchens.
Motels commonly have a one or two-floor layout and guests access their rooms directly from the parking lot and have open-air corridors and staircases. They range from 200-300 SF. Many motels are smaller, older, owner-operated assets in secondary and tertiary markets. The big hotel brands won't put their names on these, which is one reason why many motels struggle.
Time Stamps:
00:22 Define difference between hotel and motel
01:23 Reason 1 to convert from hotel to apartments
01:53 Reason 2 to convert from hotel to apartments
02:14 Reason 3 to convert from hotel to apartments
02:29 Reason 4 to convert from hotel to apartments
02:49 Reason 5 to convert from hotel to apartments
02:59 Item 1 to look out for when concerting from hotel motel to apartments
03:18 Item 2 to look out for when concerting from hotel motel to apartments
03:38 Item 3 to look out for when concerting from hotel motel to apartments
03:53 Item 4 to look out for when concerting from hotel motel to apartments
04:15 Item 5 to look out for when concerting from hotel motel to apartments
04:35 Item 6 to look out for when concerting from hotel motel to apartments
05:18 Item 7 to look out for when concerting from hotel motel to apartments
05:49 Item 8 to look out for when concerting from hotel motel to apartments
06:11 Item 9 to look out for when concerting from hotel motel to apartments
06:38 Item 10 to look out for when concerting from hotel motel to apartments
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Beau, The out takes you add lol 😂.
Keep up the good work sir 👍🏻
😆😆 love the bloopers! And perfect video! Have recently started to look at this!
lol appreciate that.
BROOKLYN BAABE
I love the hotel to multifamily conversion game! Reply below if you want to learn more.
Interested in learning more.
Interested in learning too
Interested
Nice we just did this with 55 units of our annex building to stabilize my cash flow (cough cough did on my youtube channel) great content bud
that's great, nice work. will check it out.
What kind of loan to get for this kind of flipping? Can you rent out the units that had been renovated while doing others renovation?
The lending world has completely changed as of November 22 and I haven't been involved in a hotel to apartment conversion since the lending environment has changed so you'd need to run a deal by a mortgage broker. As for renting out units while others are still being done, you'd have to first have a certificate of occupancy in hand by the local building department before you can do apartment leasing.
Terrific video and tips as usual! I recently completed conversion/remodel of a lower end motel to a long term rental in a rough area of Volusia County. Great cashflow, but only because of good management, a reliable contractor (they exist!) and the HUD-VASH program. I'd like to do it again, but even class D prices are up.....
This is great to hear, were there any surprises on expenses? What size were your rooms?
Hey D.B.
Got one in Orlando, 52 doors.
How could I get in touch with you?
@@SaveThouandsOnWater Hi, left you contact info on your youtube discussion section.
I’m looking at similar deals in Volusia County. Would like to talk the market if you’re available
@@BeauKnowsMultifamily Various sizes, but about 250 sqft. A few SUPER tiny ones I had to consolidate. I added a 25% fudge factor on rehab... shoulda been 50%. These buildings were ooooold!
bro amazing!!!!
thank you, glad you got some value from it.
What is your favorite method to find general contractors in a new market?
Call the Top 5 property managers with the most number of units under management, that are based in the market you're working in, and ask them who they are using for remodels on their apartments. Tell them you've had a couple investors tell you that they were the mngt company to call in the market and that they would know. You can let them know you're working on a project that you may need mngt on as well.
@@BeauKnowsMultifamily brilliant thank you!
What about extended stay motel to condo conversion?
Extended stays are perfect for Apts but I don’t handle condos because that is a residential agent sale.
What about utilities? Inclusive in rent? Or individual meters like real apartments?
since most hotels were not set up to be individually metered you would contract a 3rd party vendor to bill the tenants separately for all utilities via their usage measuring devices.
Is it easy to change the zoning from hotel/motel to multiunit residential.
depends entirely on the location of the hotel as it relates to other uses surrounding it and it depends on the makeup of the municipality and its commissioners.
how do you figure costs to renovate. I have found 4 in my travels and I want to figure hard costs (staffing/handyman) and other misc potential costs.
I would find a contractor and bring them with you to a meeting with the city zoning and building department. At that meeting, the city zoning and building department staff will tell you all the things you need to do to make the building compliant for apartments. Having your contractor with you to hear first hand will be helpful. Then they can being putting together the cost estimates.
When renovating always overestimate by at least 1.5 if not 2 what you think...if not used- it can go to pay principal ahead or future repairs-anything!
Ask those arrogant owners to clean first then help economy. Because where money they slide in, with that good talks and with a help of bank!