Yankees338
Bronze Contributor
Can somebody say "GENIUS"? That's definitely a good use of $250k in my book.Hey Jesse,
Just to pass on a story:
When we took over the Old World Inn, we planned on spending $250K to add a downstairs room (since it would increase revenues by $50-75K/year, and increase resale value by about $250K-375K).
But what we did instead:
Increased the value of our Inn by increasing occupancy and revenue (accomplished the same end, bringing in more annual revenue and increasing resale value).
But we still had $250K left. In fact, now that revenues had increased, we had a lot more cashflow that we could do things with.
So we bought another property, using the $250K as the down.
And used the increased monthly revenues from the Inn to make the payments while we developed it.
Not for everyone, but there you go.
-Russ H.
PS We're not done yet, but by all accounts, we should be getting $1,200,000 in additional revenues, and have another $1-2,000,000 in equity (and I'm being conservative here).
Not a bad use of $250K, eh?
Also, Jesse, what kind of shape are the interiors in? A fresh coat of paint and some new, inexpensive fixures can go a long way in making a place look newer for a pretty low cost.
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