Found out an owner nets 43% of the room rate. Not sure if that will cover a 400k 30yr fixed mortgage, but very close.
That's ridiculous low percentage of the room rate. Some of the condo-hotel's i saw was charging 25% room rate, and even so it was till hard to get the numbers to match. Keep in mind that in addition to just the room rate fee, there are probably HOA/management fees that are considerably higher than any fees you would see in a residential attached home.
Do the math yourself. Find out home much room rates are, how much management fee is, how much of the hotel costs they want you to put up, how much the fees are to rent the room out, how much insurance will be if you can find it, and how much a commercial loan will be. BTW, I'm pretty sure you won't be able to get a conventional fixed rate mortgage..Because again this isn't a residential property.You'll be looking at commercial property financing.
