Mar 20 • Banter
ABVI Hotel In Texas
This looks solid. Evaluated under 60 seconds.
Cap Rate Check
$397,615 ÷ $2,990,000 = 13.3% ✅ (matches OM)
Revenue (from OM)
≈ $903,287
Margin
$397K ÷ $903K ≈ 44% margin (solid for economy hotel)
DSCR + Yield (THIS IS THE PLAY)
Assume conservative debt:
Loan = $717,600
Debt service ≈ $60,000/year (safe estimate)
⸻
DSCR
$397,615 ÷ $60,000 = 6.6 DSCR
👉 This is VERY strong (lenders love anything over 1.25)
⸻
Yield on Recorded Price
$397,615 ÷ $1,345,500 = 29.5% yield
👉 This is where you win — not the cap rate, the yield on structure
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12 comments
ABVI Hotel In Texas
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