Daily
Real Estate News | March
24, 2006
Flipping Hotel Room Hot New Investment
The hottest
business for real estate flippers these days isn’t starter homes — it’s hotel
rooms.
Investors buy individual hotel rooms with a relatively modest capital outlays.
The least expensive opportunities are in yet-to-be-built hotels. There’s no
upkeep for the finished unit. In addition to being able to stay in their rooms
whenever they want, investors make money by leasing out the units to others.
Most hotel operators run services that will match rooms with customers and send
a healthy fee to the room owner. James Dubois, a hotel-condo investor in
London, says he made a solid 6.7 percent return in the past year on his
$410,000 purchase of a room by renting it out through the building's developer.
The larger payoff can come by investing in rooms in hot locations and hoping
they rise in value. Joel Greene, president of
