Looked at a building yesterday

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01/19/2015

We drove (60 miles) to see a currently operating B&B, the oldest in its county.

Basically a 3500 SF 3 story building (.ca 1900) in the center of a town of 9000.  Has one of those nice canopies like a lux hotel in NYC that crosses over the sidewalk.  First floor is a nice Arts&Crafts store rental.  The second floor is a 3 room B&B.  3rd floor is owner's quarters. B&B: One room en suite, the other two their own bath across the hall.

The problem is, the building nets out as worth more renting the 2nd/3rd floor out as 3BR apartments (they pay utilities) than the current B&B owner's revenue (less utilities, food, owner's time, laundry, cleaning, and all the other things that go into running an inn...  Way more...

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[admin note: Created enough waves and discourse to be shown the door.]

 

PhineasSwann's picture
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09/25/2012

Don't sweat it. We looked at 75 B&Bs/Convertable houses online and 22 in person before we found our true love....

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Darren
Innkeeper & Owner

 

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01/19/2015

II am limited by needing to drive to work.  I looked at a couple dozen before I realized that I needed a commercially zoned house. We plan a lot more than just B&B, and you cannot do most of such things around here in residential zones.

There are few of those in this area, so we are looking under every rock.

We actually have a verbal offer in last week - $40,000 for a 9000 square foot complex - they are asking $85K.  [Needs comprehensive mold treatment, so not as much a bargain as it seems]. If we come to agreement, mold, septic, and roof inspectors are next, followed by a full blown inspection.  Perfect for the dream we have in mind, but I know it is more likely to all apart.  We continue to look at others.

Morticia's picture
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05/22/2008

PhineasSwann wrote:

Don't sweat it. We looked at 75 B&Bs/Convertable houses online and 22 in person before we found our true love....

Wow! Altho, come to think of it, there were days we saw 4-5 in one trip. We looked from Buffalo to Bar Harbor and south to Mystic. And everywhere in between. Except MA, I don't think we ever saw anything there that fit the bill price-wise.

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TheBeachHouse's picture
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06/24/2013

Morticia wrote:

PhineasSwann wrote:

Don't sweat it. We looked at 75 B&Bs/Convertable houses online and 22 in person before we found our true love....

Wow! Altho, come to think of it, there were days we saw 4-5 in one trip. We looked from Buffalo to Bar Harbor and south to Mystic. And everywhere in between. Except MA, I don't think we ever saw anything there that fit the bill price-wise.

 

We looked over the course of 20 years.   From Idaho to California to Denver and then the East Coast.   It was always, 'it would be great if we could make this work.'   Time and place and opportunity came together here.

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TBH

 

happykeeper's picture
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12/11/2008

Lots of reasons that this property as described is a non-starter. Hope you enjoyed the drive though.

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05/22/2008

You aren't going to make a living off of that one. Is it a prime location where you might up the revenue somehow?  Sounds more like a lifestyle place. Shared baths???? I don't care what anyone else says...I say.... NEVER!

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01/19/2015

I can definitely up the revenue a lot, but this was about the seller's price. Business value based on current financials, not what they say buyer can do in future.

60 miles from work, so not high on my list

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01/19/2015

That went through my head.  Their website does not book, they have reviews on TA but not link to booking option, not on booking.com, not on trivago, etc. No one in that area is on bed and bfast . com. Does not take credit cards, current owner is on her own and (bought from someone else) in business 20 years, only uses 3 guest rooms, but could use up to 2 more on 3rd floor where she lives, etc.

There are 5 positive TA and 1 negative TA reviews.  I think the negative review was spot on.  Poorly lit, knick knacks EVERYWHERE rather than clean and inviting, tiny or no TVs, and other things.

I THINK she might make $25K in revenue from the B&B (and maybe $8K for the first floor store rental).  I could make $22K for the 2nd & 3rd floors.  And rentals take far less cost and effort.

The point was valuating the business and building for potential offer.  You don't factor in the new owner's potential in an offer, the valuation is based on current business activity...

With all the costs and labor, her $25K in revenue is really a pittance.

TheBeachHouse's picture
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06/24/2013

How much biz does the current owner do and would it change if you were running it?

We are doing more than twice the business the PO did.   Because we advertise.

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01/19/2015

I believe I will make far more, but we have many non bnb addons planned.

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