anyoneinterested in motel rooms with 10% returns
- Thread starter james_w
- Start date
hotel is a pub motel does not have a pub yes the idea is to buy the whole block and has several options bank wants 11% for us to buy it so why not offer investors 10% anyway just and idea most of the renters are long term contractors so would go well as a permanent rentals among other things....
i knew a guy/a mate through a mate that is? who bought the old out back pubs in NSW he got them for about 200<300k as the bush was suffering and these beutiful old pubs strugeled to make a doller , this is what he did,
ha purchased the building, and applies for a hiserical society grant and got them painted up real nice, the grant was 150k and paid some locals 50k to do the work, he then took the pokie licence and sold it to some city pub for 1mil and then sold the bottem sections as a drive by bottel shop and bistro for another 400k and the other half to a sydney couple ready to dream and run a bed and breaky for another 250k not bad eh!
ha purchased the building, and applies for a hiserical society grant and got them painted up real nice, the grant was 150k and paid some locals 50k to do the work, he then took the pokie licence and sold it to some city pub for 1mil and then sold the bottem sections as a drive by bottel shop and bistro for another 400k and the other half to a sydney couple ready to dream and run a bed and breaky for another 250k not bad eh!
ps sorry about spells
As you have posted in this forum, where the questions can be asked.
You have made a few vague statements about returns and possibilities.
A lot of solid facts may be in order (though don't hold your breath).
Can you please post at least something about what it costs, what are the anticipated returns etc.
Thanks.
Is the 10% guaranteed? What are the long term prospects of the mining industry in the area?
yes 10% is guaranteed of course it's the biggest mining town in cq
with big accomadation shortages people driving there to stay from blackwater and other surrounding areas idea is to turn it into permanant accomdation units it's valued at 1.5mill for sale at 1.35mill after works completed for the units it should be worth 2.6-3mill
actually it's quite a large motel 20room b&b I doubt much of it at all went under water I have friends out that way and most of that flood was around opal street and houses on flat blocks near the golf course and creek
anyways I am not interested in doing this anymore so can mods please close this thread? so if anyone does want to have a look it would be a good deal but after the recent storm that just destroyed blackwater it may have done some damage out there aswell it's on realcommercial it's the central inn if you have been out that way and the rooms are quite reasonable I had a few mates who lived there quite comfortbaly resortbrokers I believe is who is marketing it considering that they may not of got hit like blackwater did that made alot of people with out homes and shattered glass of 159 rooms at the curragh mining quarters I don't think there would be a problem with tenants it's 90% occ with contractors min of 3months just checkout 1 bedders in the area even in it's current state you could rent the roms permenant for $200pw+ that's 20rooms
so $208000 return take out pm fees so minus $27000 take $123125 repayments
that's 300k+ equity on the recent value I was going to try and talk them down 100k which has happened quite a few times lately and vendor has had it on the market for quite awhile
but at asking price in this scenrio it would be 58k net passive income after loan repayments
my bank wanted 11% is why I didn't buy it although I had a few offers to get it at 9.85% from brokers as for flood insurance why could you not get flood insurance seems strange to me?
p.s how's kingaroy we were thinking of buying a good size block either at kingaroy or nanango
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