Feedback on this deal please? : RealEstate


Hi all! Im a new investor and I have a situation I need some guidance on. Here’s the deal:

Rural small vacation cabin rental for sale along with the business rights, business is well established and well reviewed.

Owners are old and just can’t keep the place going any more. Also they have no online presence. Opportunity to add more cabins, yurts, tiny homes, etc. for more revenue and have a bit of capital I could do this fairly quickly if desired.

5 acres, 4 rustic studio cabins, owners cabin and a office. Owner claims 45% occupancy but that seems high, studios rent for 80 a night which is one of the cheapest in the area. Property is overpriced. Likely worth around 180-200k (only my best guess) as just a residential purchase if the cabins were outbuildings but it’s a well established business of around 15 years.

280k asking price. Willing to do half cash and half owner finance. Property is zoned weird, owners cabin is residential, studios are commercial. They said this was done for cheaper taxes. This maybe coupled with the business attached and high asking price and it being a niche situation are causing trouble for people getting financed I think, hence the owner financing. It’s been on the market a while.

I would live on site. Also have a corporate job but have other people to help run the park so the first few years I don’t need to turn a profit if we feel this is a smart long term investment. It’s in an area I’d like to retire and I think I would be good at running it.

Thoughts? Thanks for your time!



Source link