Hi Cheri,
You should really do some of the code research before you even purchase your home. When you narrow it down to a home / place you like. Then find out what the code is. It differs dramatically, not only state to state but county to county and town to town. Your really need to research all three levels before jumping into a purchase and then finding out that state and county will allow it but the town won't. You also have to determine what you want to do and what your classification would be. Are you intending to be a B&B (in NY that means 5 or fewer bedrooms total) or do you want to be an Inn (which in NY means more than 5 bedrooms and the chance to serve meals to non-guests)?

We were fortunate to live in a town with no real restrictions so it fell to the county and state restrictions only. Sometimes turnkey prices can be worth it. At least you'll have an immediate income stream if it has been run successfully. Starting from scratch can take a whie.
_________________
Steve Wirt
Wine Country Cabins Bed and Breakfast in the Finger Lakes
and Inngenious Bed and Breakfast Website Promotion

Hi Cheri,

I just want to chime in with Steve......RESEARCH is key when starting from the ground up. I watched two business-savvy friends fall into a bad situation because of not enough up front research. Turnkey purchases, while they may seem expensive up front, can save you in the long run. There is some creative financing out there if you can find the right seller...especially if you're open to relocating anywhere. As an example, my B&B consists of two side by side homes...which were purchased using conventional residential mortgage financing. The "business/goodwill/furnishings" etc were financed by the seller with a down payment and a 15 year loan. This worked for both of us and the seller, with a vested interest in the business, was ready to help with guidance/advice, etc as it was needed.

Dear Cheri:

I agree with those who have responded to you already. You need to complete considerable research before building a business plan for a bed and breakfast. Initial investment costs in an existing business can be daunting, until you learn something about the actual costs of new construction or renovations.

Over the years in Yellow Brick Road (www.YellowBrickRoadNL.com), we have carried a number of articles that address your concerns. You will find an index on the order form page; from there you can select some relevant articles.

Meantime, as you suspected zoning can be a big obstacle. You also need to select a market that will bring you the occupancy that will support you. In some communities, it will be difficult or impossible to obtain permits for more than four or five rooms; a B&B this small will not produce enough income to support you. Thus someone will need to have outside employment.

We always recommend that prospective innkeepers consider existing, up and running inns first. These inns already have a track record, a customer base, and should produce revenue the day the escrow closes. Creative financing to get the downpayment together is not unusual. But the seller needs to know you're serious and that you have a complete understanding of the nature of the business.

One other thing I'd like to suggest. You should attend one or more of the seminars/workshops that are offered across the country to help prospective bed and breakfast innkeepers make initial decisions. Some are conducted by realtors/consultants, others are run by actual innkeepers who have plenty of insights to share. You'll find a list of these on the YBR website as well.

bobbi

Cheri,

I agree with all that's been said before now and I want to support your idea of expanding the B&B as you can. I think that's a viable way of getting into the innkeeping industry, and sure makes learning the innkeeping ropes easier.

Let us know how your search, and research, progress!

-Kit