Distressed Motel-to-Micro-Apartment Conversion Modeler

Underwrite buying distressed motels ($35k/key) and converting into studio workforce housing ($950/mo). Model kitchenette CapEx and equity creation.

Acquisition & Conversion CapEx

Total Motel Keys / Doors

Purchase Price ($ / key)

Kitchenette & Rehab ($ / door)

Post-Conversion Studio Rent ($ / mo)

Operating Expense Ratio (%)

Stabilized Apartment Cap Rate (%)

$53,500 ALL-IN BASIS / DOOR

Stabilized Annual NOI

$422,370 / yr

Stabilized Asset Valuation

$6,033,800

Net Conversion Value-Add Equity Created

+$2,823,800 Net Equity

$3.21M total basis turns into $6.03M institutional multifamily valuation upon completion.