Serious about changing careers

[JimBoone]

The cost of the B&B is not the important # in the equation. It's more important what your bottom line is at the end of the year and if you're able to live the kind of life you want. A lifestyle B&B many times doesn't provide much added income but you can work when you want and where you want, while a financially viable B&B should provide you with income and often is larger so it supports staff. Those B&Bs are typically on the higher end. For example, our B&B cost us a little under a million to build with us having 30% down and $75k in reserves while we got going. Our sales are over $300k a year for a 10 room B&B, no restaurant. 80% of our income comes from July-October, the rest of the year it's only weekends. A friend bought a B&B for $495,000 and is now considering turning it into year round shares for skiers and hikers to buy into as she doesn't make any $ at her place to afford to travel and do what she wants. Her 6 room B&B only does $105,000 in sales, her taxes are $10,000, her heating costs on the old historic building are huge, then add in insurance, internet, cable, electricity, food, maintenance, snow removal, mowing the huge lawn, etc. and you can see why running her 6 room B&B all by herself isn't worth it anymore. If you have a loan then you'd have to pay your debt service out of this money as well. She can hardly build up the money to put on a new roof she'll need in the coming years at about $20k, and god forbid a furnace goes out on her. So while our B&B cost twice as much, we make 3x as much and close when we like (except the high season of course) and have one 24 hour per week employee year round.
If you're going to buy a business you'll probably be required to have a commercial loan which in today's market they want 25-30% down, a solid business plan, backup $ to pay the mortgage while your building your business, many times showing experience in hospitality. If you buy a house and then work to convert it to a B&B, be sure that you get town approval to run a B&B in that house. I'm a Realtor as well and you need to have your agent write it into the offer that it is "subject to receiving planning/zoning board approval for a B&B license." Good luck!.

You just described me. The friend with the 6 room place. Now that I've paid off the bank, there are some (unfortunate) small liens against the place. And I need a new roof too. So...thinking of going long term weekly....which has its own problems. Or half daily tourist and half long term screened weeklys There is an affordable housing shortage on around here. Advice please.
.

I suppose it depends on your lifestyle, needs, and desires as we are all different. I seem to remember an old saying in childhood that company and fish smelled after three days or something along that line.
I’ve rented property long term, business, but not much fun, when tenants moved it was time to paint and freshen up the property for the next tenant to call home.
I enjoy meeting the tourists that come and go, fun side of the work and the shorter stays allow me to service the property as needed between guests and keep in good condition.
The semi long term guest, I don’t know, to me seems like they would be long enough to increase the wear and tear, but not long or profitable enough to redecorate between guests, not my cup of tea.
I figure I’m also rather like the example of the friend with 6 rooms, not a huge income, but enjoy the life. We are an 8 room motel, like you, most debt has been paid off, my goal is to be the extra nice little place and beat the big hotels on price, so far it works for me. I did have the advantage of working another job till retirement, so suppose that helped us on the financial end

 

[ChrisandShelley]

When looking at bed and breakfasts, also keep in mind the potential. We bought a 6 room bed and breakfast 4 years ago that paid for itself and that was it. Since then we added two rooms, built an event center and two cottages. We have expanded our business because of the location and the size of the property we were on.
I also think your YouTube idea is a great one. We just started a YouTube channel called Living the B and B Dream. It's a lot of fun plus the potential for future passive income is definitely there.
Good luck with your dream. Please keep us informed about your progress.