Am I nutz....

Zeldman

Zeldman

Touchdown! Greaser!
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Billy
Ok, let me finish. At my age am I nuts to be looking at a B&B in the middle of BF Nowhere, Alaska.??
 
Have some friends who did that in somewhere CA. Was fun for a while but the novelty wore thin after a couple of years. Selling it was significantly more difficult than buying it.


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Too much work for too little ROCE.
 
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That's not a job or an business decision, it's a lifestyle.
 
Do you like people? I don’t. So a BnB isn’t for me. But if you like people, maybe it’s for you! :)
 
I grew up in Jersey shore tourist town with lots of B&B's. From what I saw of it, owning a B&B is kind of like owning a boat in that the two happiest days of your life are the day you buy it and the day you sell it.
 
Sac Arrow said:
I mean, you have a plane, so boats and negative ROI investment property should be a natural.
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No plane or boats for me, but the business supports the current owners home in Hawaii. The good part about it is that it is not owner occupied, I won't need to live there, but in the middle of nowhere is a good place to live.

Polarisguy said:
Selling it was significantly more difficult than buying it.
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Yeah, that is what I am afraid of. Not too many folks like me that will live in the middle of nowhere and enjoy it.

GRG55 said:
Too much work for the ROCE.
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There is also a 15 unit apartment building for sale in the same town. The financials show it has been full for the last 3 years, with a waiting list. Strange for a village of less than 1000 folks but it looks like most of the renters are there only seasonal, but keep the apartment all year.

DFH65 said:
Lake Louise Lodge is for sale over by Glennallen you could buy that.
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Too near civilization plus on the road system. I gotta have my space..:yesnod: I spent some time in Tok. Some different folks there, for sure. And no liquor license, that'll be 400K right there, but folks in Alaska sure like their drink...


Ted said:
Do you like people? I don’t. So a BnB isn’t for me. But if you like people, maybe it’s for you! :)
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No, I don't like folks all that much, but I could stand folks that have no qualms about spending 500/night to spend the night in comfort before and after spending a week out in fish camp or hunting and enjoy 8 buck a glass beer.
 
No matter which way you look at it, a B&B is a hospitality business. Would seem suited for extroverts.

An apartment...well that's a bit different. But you'll have to enjoy dealing with wonky heating systems and fixing dripping taps. With 15 units there will always be something needing attention.
 
You could do a "fly in VRBO or airBNB" type place. But be forewarned. There is a growing pushback on those by the neighbors. Generally people don't like a motel being operated in their residential neighborhoods. So make sure it's accepted, and probably more important, make sure its encouraged. They can work pretty well under the right circumstances. You still have the issues of tenants. But MOST of your tenants will be decent.
 
Zeldman said:
No plane or boats for me, but the business supports the current owners home in Hawaii. The good part about it is that it is not owner occupied, I won't need to live there, but in the middle of nowhere is a good place to live.



Yeah, that is what I am afraid of. Not too many folks like me that will live in the middle of nowhere and enjoy it.



There is also a 15 unit apartment building for sale in the same town. The financials show it has been full for the last 3 years, with a waiting list. Strange for a village of less than 1000 folks but it looks like most of the renters are there only seasonal, but keep the apartment all year.



Too near civilization plus on the road system. I gotta have my space..:yesnod: I spent some time in Tok. Some different folks there, for sure. And no liquor license, that'll be 400K right there, but folks in Alaska sure like their drink...




No, I don't like folks all that much, but I could stand folks that have no qualms about spending 500/night to spend the night in comfort before and after spending a week out in fish camp or hunting and enjoy 8 buck a glass beer.
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Why are the current owners selling a profitable passive investment?
 
Zeldman said:
No, I don't like folks all that much, but I could stand folks that have no qualms about spending 500/night to spend the night in comfort before and after spending a week out in fish camp or hunting and enjoy 8 buck a glass beer.
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I was going to offer to come stay with you, but I guess I'll just have to sleep in the fbo instead :(
 
In the B&B business, you work when everyone else is having fun. Weekends and holidays.
 
I’ll come ferry clients out 3 weeks at a time next summer :D
 
Zeldman said:
Ok, let me finish. At my age am I nuts to be looking at a B&B in the middle of BF Nowhere, Alaska.??
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Sounds like you'll need an airplane to go check on your property, for business purposes...
 
Oldmanb777 said:
You could do a "fly in VRBO or airBNB" type place. But be forewarned. There is a growing pushback on those by the neighbors. Generally people don't like a motel being operated in their residential neighborhoods. So make sure it's accepted, and probably more important, make sure its encouraged. They can work pretty well under the right circumstances. You still have the issues of tenants. But MOST of your tenants will be decent.
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With less than 1000 residents spread out over the island, I don't think that will be much of a problem.
 
Lindberg said:
Why are the current owners selling a profitable passive investment?
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The current owners are much older than me, and live in Hawaii.

Cluemeister said:
In the B&B business, you work when everyone else is having fun. Weekends and holidays.
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Currently it is under a management team. Otherwise known as a retired couple that like the rural village lifestyle. However with what I would plan to do might be a little too much for them.
 
What kind of “village” are we talking about here?
 
DavidWhite said:
What kind of “village” are we talking about here?
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You know, typical bush village in the southwest close to the ocean. Lots of hunting and fish guides that apparently is big business there. With a cannery.

Arnold said:
Until they don't and leave for HI.
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Caucasian husband married to an Eskimo lady, probably related to half the town. They are not going anywhere, they don't get paid enough to leave.:yesnod:
 
Zeldman said:
You know, typical bush village in the southwest close to the ocean. Lots of hunting and fish guides that apparently is big business there. With a cannery.
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I am reasonably certain I know the exact village you are talking about now lol
 
Not Emmonak. Or Kodiak. Further southwest along the chain.


I have pretty much talked myself into staying away from this deal. But my wife is going to beat me for not taking her to Alaska to live....
 
Zeldman said:
No plane or boats for me, but the business supports the current owners home in Hawaii.
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If that's true (and I doubt it) then the obvious question is why are the selling? Do they not like living in Hawaii?
 
Juliet Hotel said:
If that's true (and I doubt it) then the obvious question is why are the selling? Do they not like living in Hawaii?
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Yep. It's true. I don't own any boats or planes...:lol:

The owners are selling because it is time for them. They are elderly and just not wanting to put the effort in anymore plus the travel back and forth from Ak to HI. It is easier to live in expensive places when the house is paid for.

I am leaning towards not moving forward on this. A couple reasons, reason 1, I have spent my time in Alaska. Another reason is I will have to look the property over and I really don't want to travel right now, much less travel to Alaska in winter.

And have you seen prices in Alaska? The cost of shipping adds a lot then add the normal Alaska greed....I mean a 12 ounce glass of beer will cost ya at least 8 bucks if ya like cheap beer. The better stuff will cost ya more.

Flickr-vofuth-700x419.jpg
 
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