Another area of investment is in areas near budget motels, if the parties have limited partnership where the general partner is on that heads a fast-growing budget motel chain. As inflation continues, the commercial travellers’ cost of transportation, food, lodging and many more is escalating. Not travelling is not an option for these people, their alternative is to find a cheaper accommodation.
Cash flow projections are excellent beginning the second year. You should only anticipate bank interest or less during the first year while the motels are being constructed. They may be constructed for cash and after a steady cash flow has developed over two to three years, a mortgage may be obtained on the motels. These funds could be used to increase the number of rooms of the original motels or to expand to another location.
This is the investment that you might want to consider if you are interested in cash flow with some tax shelter and the potential for appreciation. Prolonged gas rationing could reduce the cash flow from this type of investment. Although your market is limited but this venture is not seasonal, you can open your motel 24/7 if you want. Motorists and guests may come and go, make sure that your location is accessible to them.