Odd Numbers for an Inn

[ThuderingWind]

Do you know what the actual property is worth without the business?.

taxable: 389,000 real estate: up to $800,000 give or take a little depending on who is doing the appraisal.
This has been on the market for 6 years and the price keeps going up with each new real estate agent (value inflation).

 

[gillumhouse]

Do you know what the actual property is worth without the business?.

taxable: 389,000 real estate: up to $800,000 give or take a little depending on who is doing the appraisal.
This has been on the market for 6 years and the price keeps going up with each new real estate agent (value inflation).
.

taxable: 389,000 real estate: up to $800,000 give or take a little depending on who is doing the appraisal.
This has been on the market for 6 years and the price keeps going up with each new real estate agent (value inflation).

That owner needs an education!!! If it has been on the market for 6 years (ignore these numbers because they are smoke) and it did not sell for 1 million 6 years ago, what in heck makes them think it will sell for 2 million now - 6 years later? Nutso!!!

 

[Samster]

I greatly appreciate the comments. Y'all ain't beating 'round the bushes neither. That is good for me. I learn better that way.
I agree that they may have paid the part time staffer (mostly yard work, $9/hr) using a 1099. Makes sense with the information they provided. BTW, the data is part of the real estate package.
I am just not sure where the difference in the money went! Using the spread sheet formula, 4 rooms * $114 ADR * 48% Occupancy = $218.88 per day income, then * 30 for a month and the Month * 12 for Year, thus the $78K number.
If I use the 48% Occupancy (provided the 627 days is legit), and divide that into the Income $56K (provided it is legit), I would get $90 ADR.
Using the 627 Nights Booked * $114 ADR (from website), we get the $71K as noted above.
If I add the Yearly expenses (if legit) to the $56K income, we DO reach the $71K number.
If we add in EmployeR share of taxes, we get closer to the $78K number.
I will get a look at the tax form data once they answer some other outstanding questions (after vacation). They are reporting $19K in expenses not including food.
I am now a little concerned about the two different calculations getting the 71K and 78K. One seems real (71K) and the other is what the Bank formula is according to the spreadsheet..

I worked part-time to for a year to help out a neighbor with some office work. I was not paid enough to even generate a 1099, apparently, per their accountant. So, there is that...
I had a very part-time housekeeper as an independent contractor who would have fallen in that category as well.
I agree to try and get tax returns, which may take signing a non-disclosure form. There's a good chance at that amount of income that it was all spent on the property and expenses.

 

[Breakfast Diva]

Do you know what the actual property is worth without the business?.

taxable: 389,000 real estate: up to $800,000 give or take a little depending on who is doing the appraisal.
This has been on the market for 6 years and the price keeps going up with each new real estate agent (value inflation).
.

and there's only $58k? That business is WAY over priced. They will probably tell you that it has the potential of making much more money, but be careful....you do not pay for potential. That's the biggest pitfall most aspirings fall into. Potential will make it sell quicker, not for more money.
Also, if the price keeps going up with each real estate agent, it's probably the only property/business in the country that has increased in value in this country. There are so many well priced properties out there for sale right now, there's no reason to overpay.

 

[Joey Camb]

Do you know what the actual property is worth without the business?.

taxable: 389,000 real estate: up to $800,000 give or take a little depending on who is doing the appraisal.
This has been on the market for 6 years and the price keeps going up with each new real estate agent (value inflation).
.

taxable: 389,000 real estate: up to $800,000 give or take a little depending on who is doing the appraisal.
This has been on the market for 6 years and the price keeps going up with each new real estate agent (value inflation).

That owner needs an education!!! If it has been on the market for 6 years (ignore these numbers because they are smoke) and it did not sell for 1 million 6 years ago, what in heck makes them think it will sell for 2 million now - 6 years later? Nutso!!!
.

exactly! what it is worth is what a buyer is willing to pay - the Balmoral a lovely 23 bed small hotel renovated about 3 years ago and bought for 1.5 million sold a month ago for 750 thousand ie half price - because that is what it is worth to the buyer!