Complex Deal for financing. Need Help!!! - Long - Posted by Murray Wiggins (NY)

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

Complex Deal for financing. Need Help!!! - Long - Posted by Murray Wiggins (NY)

Posted by Murray Wiggins (NY) on September 06, 2002 at 15:22:08:

I have an opportunity with a commercial and residential deal.

Owner wants to sell one residential lot and one commercial lot with building improvements (bed & breakfast, and 3 cottages) together for $250k. There are 2 functional cottages bringing in $1,800/mos the third could bring in $1000/mos (needs renovation$30-40k), the bed and breakfast could support 4 rooms and a restaurant (not sure $/mos). This needs massive renovations inside and out ($400-$500k).
The residential property has old junker cottages that are best blown away. It can support a residential house.

My plan was to secure the property. Rehab cottage 3 to bring in $1,000/mos. Construct a new house on residential lot and sell at a $30-50K profit. Take the profit and plow into renovation of the B&B. Then sell off or refi and take the profit out.


  • Does this plan make sense?
  • Are there companies out there that do this type of financing for securing and rehabing commercial and residential property?

Murray Wiggins