Motel In Maine Possible Condos?
Okay I own a motel which has 9 one bedroom units on the Maine coast and are all year round units, however, i am thinking of selling the building, but then i was thinking of possibly converting to condos, but I am unaware of what it takes to get it done. The building which also comes with a 4 bedroom unit, 2 bedroom unit and king unit which is a separate buidlign next to it. I am thinking of listing it for 920,000.00 which i do not know we will get, but it is only 75 yards across the street from the beach and in beautiful condition. I have all new appliances, and furnishings so that is a nice selling feature. I think they could sell for 150 - 180 peer unit, but if it is going to be too much of a headache and too expensive I would just as soon sell.
thanks
Why do you want to sell? What part of Maine?
Scott
i have another business which i have to devote more to. Plus I also have a 21 unit up the street from the first one. It is in the Old Orchard beach area
I'm just curious as well, but if you are turning a positive cash flow and you don't have another investment lined up to 1031 the profit then why sell?
I'm sure you have many private reasons that you don't want to discuss, so please don't be offended
i guess i just don't want to be bothered with it at this point. my husband and i are seriously thinking of changing them to condos as the market up on the Maine coast is booming. As for the 1031, like i say, let uncle sam take the money it comes down to the quality of life and what you want to do with it.
ok, look at the picture this way:
How Many units did you say you have? 12? So you want an investor to come in and buy it for 920,000.00 and lets be sufficient, and say they sell for 150k each. (take an average) thats 1,440,000. Now honestly, how much will it take to get those units liveable, up to par, deeded individualy, listed (5%) and sold. What once looked like a prettty decent deal, is starting to turn sour, because what looked like an 500,000 profit, is now starting to look more like 150,000-200,000, and i know I wouldn't spend over a million to make 200,000. Doing what I do w/ the preforeclosures and sub2, and spending what i spend and in turn to make what ive been making, i wouldn't touch this.
What im getting at is not to duscourage you. Just think realisticly. Have you talked to anyone about a repair cost? I don't know what maines condo laws are, but here In mass, firewalls are a must between horizontal units. Also, it will cost anywhere to 4-6k Each just to get them their own deed, (atleast an additional 48K).
I think your on the right page to sell to an investor, but think like one and ask yourself, "if i was buying these, would it be worth it, or is this price too high"