Topic: Purchase of an owner's residence managed by an eminent hotel
Purchase of an owner's residence managed by an eminent hotel of a foreign country
I have the opportunity to buy a studio unit in a brand new development in an exclusive part of the world with very limited competition. The country is very supportive of business with the United States.
The hotel operator manages the rental housing and takes 40%, followed by 5% for the FFE (furniture, light fixtures or other equipment) and a HOA of $ 500 per month. Oh, and the unit costs $ 200k and can only be financed for the last 35%
Running my own models I expect the unit could still throw off $ 10k per year (for a 40% low occupancy) and up to $ 30k / year for an 80% occupancy. In addition, there is the idea that the unit could appreciate in value itself.
The numbers look good, but the outflow of capital is enormous. Are there any pitfalls I may not consider? Does anyone have any experience successfully investing in something like this?
Thank you for any information you can provide.