MB 269: Repositioning Hotels as Multifamily Assets – With Serge Shukhat

<p><span style="font-weight: 400;">COVID decimated the hotel industry, bringing property values down significantly. And savvy multifamily investors are buying distressed hotels on the cheap and converting them into apartment buildings. But what are the pros and cons of this strategy? </span></p> <p><a href="https://www.linkedin.com/in/serge-shukhat-8004452/" target="_blank" rel="noopener"><span style= "font-weight: 400;">Serge Shukhat</span></a> <span style= "font-weight: 400;">serves as Principal at Zona Capital, LLC, a real estate investment firm that specializes in acquiring value-add multifamily and mobile home park assets. Serge spent 13 years as a corporate warrior before leaving his W-2 in 2012 with the cashflow from 70 single family rentals. Then he shifted his focus to multifamily and now owns a portfolio of more than 1,000 units. And in the last two years, Serge has developed an innovative strategy for repositioning hotels as multifamily properties.</span></p> <p><span style="font-weight: 400;">On this episode of Apartment Building Investing, Serge joins cohost Garrett Lynch and me to share his approach to converting hotels into apartment buildings. Serge explains why he operates the units as Airbnbs to start and leases them up gradually and describes the challenges of running this kind of hybrid property. Listen in for Serge’s insight on the barriers to entry for repositioning hotels and learn how YOU can benefit from acting on this unconventional multifamily play!</span></p> <h3>Key Takeaways</h3> <p><span style="font-weight: 400;">How Serge got involved in real estate</span></p> <ul> <li style="font-weight: 400;" aria-level="1"><span style= "font-weight: 400;">Searching for way out of corporate job</span></li> <li style="font-weight: 400;" aria-level="1"><span style= "font-weight: 400;">Started buying single family during recession</span></li> </ul> <p><span style="font-weight: 400;">How Serge analyzes price per door</span></p> <ul> <li style="font-weight: 400;" aria-level="1"><span style= "font-weig