MemberMay 20, 2021 at 5:29 pm
I’ve talked to a couple of people that have done conversions. One thing to keep in mind is that the permitting can be different from hotel to residential multifamily. So it can add to the rehab costs.
For instance I believe electrical panels have to be in each unit, which may not be the case for a hotel. The upgrades to electrical and plumbing infrastructure can be trick too.
I think the key is to make sure you can get the property plus the conversion at below replacement/build cost.