Posted by michaela-ATL on September 06, 2002 at 19:54:17:
sounds like a lot of money to me. let’s say the b&b has 4 bedrooms and each rents out for $ 100 per night,
you probably won’t fill more than half, at least at the beginning, so that would bring in $ 220/night x 30 days = 6k/mo. i’m sure you also know, that a b&b is not an investment, but a business. for just a few rooms can you afford to hire someone to take care of everything (reservations, cleaning, cooking, redo the rooms etc) or are you planning to do it by yourself.
so, let’s see, between the 3 cottages (if you keep them) you bring in 8.8k/month = 105k - 30k hired help.
= 75k. you spend 250k +50k +500k for purchase and fixup = 800k investement. you’re kind of a breakeven with a lot of headaches and work invested. if you tear the cottages down, there’s even more cost. i don’t really know that much about commercial and i’m sure there’s a way to make this all work. in my first impression i would walk.
just my thoughts