How to Build $7.5m in Net Worth by Buying a B&B

Can I, can I press on that 5% number? That sounds like a what a lot of people buying businesses will kind of put as their, as their growth case where it kind of grows a little bit along with gdp, maybe a little bit better than gdp. But, but what I understood this situation of Swann House to be is that there's a delta between where it is and where it could be in a normal place.

So I feel, I, I, I kind of thought you were going to say, like it needs to bump up 25% and from there it, it grows incrementally. Did I misunderstand?

So, so what had happened with Swannn and why they had to close? It was, it was in complete disrepair and so you had already had a huge customer base that had had really negative experiences staying here. Add to that that it was closed and sheltered for about six months.

It does take a lot of time to build back Build back the, the occupancy. So I, I do think that it will be gradual and I'm hoping, right. That maybe my gradual projections are more conservative than they ought to be.

But everything that I've read is that you don't want to almost have a severe bump in occupancy that's not, not gradual because then it, it's not indicative of, of the natural progression, people coming. Exactly. Exactly. How interesting. Okay, so neg. So there were a lot of negative experiences.

Was this something where if, if we all now go Google Swann House, we're going to see a bunch of negative, unfortunate or negative reviews from, you know, 2022 sort of thing? Yeah, yeah, I think I, I, at that point the innkeeper was very well known and I think people have had a lot of, you know, liking for her and, and really enjoyed knowing her. But she was also hired to run and wasn't an owner…

And so the owner was absent and was just not willing to invest in the upkeep and maintenance of the property that it required. So I think you'll see in the reviews a lot of love and admiration for the innkeeper, but some frustration with, with how the building was being managed and it just wasn't as luxurious of an experience as it could have been and should have been. Could have been and should…

Because this is a what star hotel or lodging? What? This is a four star. Four star. Yep. Yeah. Yep. And so can you give us a sense of nightly rates?

I mean, we could go check ourselves, so maybe just tell us. Sure.

So it, it varies seasonally? Um, sure. Right now we're in our high season, so the rates are a little bit higher and it ranges anywhere from like 3:49 per night all the way up to 4:70 a night, not including tax. Um, and then, you know, we vary it.

So for bigger events that happen in dc, big tourist seasonality, the rates can, can increase. Like for Cherry Blossom, we'll increase the rates a little bit. And then in the winter months the rates are quite a bit lower.