The Short Term Show How Rich Somers Increased His Revenue From 180k to nearly 700 in 12 Months
Sep 11, 2024
Rich Somers, an expert in boutique hotel investing and founder of a boutique hotel fund, shares his journey of skyrocketing revenue from $180k to nearly $700k in just 12 months. He discusses the switch from short-term rentals to boutique hotels and outlines the strategies behind revitalizing underperforming properties. Rich also delves into current market insights and the importance of property appreciation over cash flow. His insights on navigating the real estate landscape in San Diego are both enlightening and actionable.
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Tripling Value
- Rich Somers bought a 10-unit boutique hotel for $1.5 million, seller-financed.
- In 12 months, he increased revenue from $180,000 to nearly $700,000 and appraised it at $4.5 million.
Commercial vs. Residential Appraisals
- Commercial real estate appraisals consider income, unlike residential appraisals.
- Increasing income boosts equity, making commercial properties attractive for value-add strategies.
Boutique Hotel Opportunities
- Target boomer-owned boutique hotels, often tired and lacking modern technology.
- Implement better marketing, dynamic pricing, and utilize all available OTAs to increase revenue.