Yes excellent question Devilz and if you don’t mind – Can we include plants or landscaping in this question please ?
Certainly not cheap and perhaps could be depreciated as well ?
Anyone know ?
Cheers
thecrest

Hi Joe.
Just trying to compare and clarify here.
So you borrowed 85% to buy the motel, 15% deposit ? Who financed that ?!! Min 50% deposit in Australia, higher at the moment.
And now the passive return is 8% ? Usually min 9% in Australia.
Your situation is a bit confusing sorry, but appreciate all the info, will try to piece it together.
Hope it continues well for you.
Cheers
thecrest

Hi Joe.
Welcome to the forum from me as just one of the many members here.
What’s an LLC ?
What type of ownership do you have ? Leasehold under management ? ? Freehold under management?

12% sounds like a good return, is that rent or nett profit?
Is it based on buying distressed property during the GFC ?
Can the return be duplicated now ?
What area of USA is the investment and can you describe the motel ? Cost ? Rent ? Restaurant? Star rating, number of rooms ? Clientele?
Australia typically returns about 9% passive for a landlord in regional areas away from the coast.

Any information would be very interesting.
Cheers
thecrest

Got any pics when it was furnished ? Also suggest you add the split now while it’s vacant to enhance its appeal and avoid installation disruption for the next tenant. “Electric wall heater” doesn’t appeal due to running cost and warming weather. Mentioning “new blinds” makes it sound like it’s one of the unit’s best features, even though you may have spent heaps on them and they’ll look great up close. Top floor location ? Stairs? Maybe put an arrow on the external pic to identify the unit. Better pics always increase enquiry rate. Block of ? how many ? Demographic of neighbours? HWS type ? Storage ? Hope it rents real soon.
Good luck
Cheers
thecrest

Suggest you inspect the property asap and talk to the tenant to find out what they have paid. From what you have said, you have cause to change managing agents without notice as their breaches of the managing agency agreement and the law are serious. Surely Dept Fair Trading will want to audit them without delay if you pass on this information to them. There may be other property owners not being paid.
Good luck
Cheers
thecrest

Do you think a sub 3% return is attractive ?
Cheers
thecrest

Hi all.
Another shire guy, grew up on a Gymea Bay waterfront, how lucky can u get !! The Shire seems to have everything except a University. Surely can’t be any spare land left except on the fringes.
Any cons ?
Cheers
thecrest

Hi Dezability.
Could you approach the agent you bought the property from ?
Also see the other agents in town even if they’re small and less significant.
Send a direct email asking all agents under what conditions they would manage the property.
Ask if they would like to sell the property for you when you decide to sell it.
How far to the next town or REA ?
Sounds sus though.
Good luck
Cheers

Hi Philfella
Like any investment building, factory, shop, office, residence, the condition of buildings varies and the rate of deterioration varies.
Not sure what you mean by building upgrades but any alterations of a cosmetic nature are usually the tenant’s cost. Structural repairs are the landlord’s cost.
Haven’t heard about 2 1/2 years turnover with motel lessees, thought it was more like 5 years. Source?
9% ROI does not include buying costs as you mentioned, they vary so factor them in yourself, like any commercial investment.
If you self manage, yes there would be landlord involvement and monitoring compliance same as if you self managed a factory, office or residence.
Capital gain exists unless you buy poorly in whistle stops.
Unlike other investments, if the tenant does a runner, the landlord usually makes a killing.
The landlord involvement is in direct proportion to the quality of the property and tenant.
For most control and least drama, select and buy a freehold in excellent condition, create a carefully planned lease, sell it only to an excellent tenant, and treat it as a partnership.
Good luck
Cheers
thecrest

What about that stuff you paint on and it removes moss over a few weeks ? Anyone used that with success? Forget what it’s called.
Cheers
thecrest