I’m in the process of inheriting a commercial property from my grandfather and am in need of some business ideas. In the past the property has been ran as a bar and is currently being run as a motel, but most revenue comes from tenants renting the rooms out monthly. There are about 9 usable rooms and they are very small, only being rented out at about $600 a month. That being said, after collecting rent, paying the mortgage, garbage, and utilities, it does not profit much. The property still has the front set up in a bar layout it’s just vacant and not being used. I want to be able to benefit as much as possible when this property is passed down to me. i’m not opposed to putting money into renovating. Any advice is welcome. TIA

  • Upstairs-Tourist-851@alien.topBEnglish
    1·
    1 year ago

    Really not enough info - how big is your city, what do the bulk of the workers in your city do, etc etc

    Renting out a monthly motel situation sounds like an absolute nightmare to me. Drugs, prostitution, evictions, etc. That said, know that build out costs are CRAZY right now. So converting this to something else is likely to be costly.

    Finally, what are you skilled at? I would try to find a use that crosses over with your existing skillset.

    If your city has enough clientele, axe throwing venues can make decent money. There are a number of youtube channels that discuss it. Very low startup costs, the biggest risk is the lease on the space, and you have that covered.

  • Bob-Roman@alien.topBEnglish
    1·
    1 year ago

    Have someone prepare a highest best use analysis.

    Are alternative use(s) legally permissible?

    Are they physically possible?

    Are they financially feasible?

    Is use maximally productive?

    Highest and best use must pass all four tests.

  • Numerous-Ad4715@alien.topBEnglish
    1·
    1 year ago

    Inheriting a mortgage from a grandfather is weird IMO not sure of the legal factors or what on that. How small are the rooms actually? If you give us a general layout we can go from there and get you more info. The people who rent hotel rooms long term are either broke crackheads or wealthy people who enjoy the amenities. You need to draw that fine line and profit from the wealthy. Get that bar open and host live music. Is there a pool, conference area?