Posted by ali on February 26, 2000 at 16:15:00:
if its a mom and pap motel, Ask them for P&l or tax returns.Look at there income and expense statement which is prepared by professional accountant.
thats wht we do as mortgage brokers.
thanks
ali
972-466-2551
calculating motel income - Posted by Stu(Boston)
Posted by Stu(Boston) on February 26, 2000 at 15:41:53:
A motel with 20 units and a 3br house in a busy area near the big city: How reasonable is it to assume that the motel will have 40 to 50% occupancy rate through out the whole year. As a newbie, I don’t know what the standard rule of thumb is. 20%? 50%? 70%? - or should I just trust what the owner states the occupancy rate is?
Re: calculating motel income - Posted by Ed Copp
Posted by Ed Copp on February 26, 2000 at 20:59:36:
There is no rule of thumb PERIOD. You might want to find out just why the motel is for sale. Also it would be good to take a look at management costs. Motels are open all night every night, someone has to get up and take care of the customers at 2 or 3 A.M. Who? and What is thier rate of pay for this service? Is this an investment or a 24/7 job?