31535 Highway 83
Warsaw, MO 65355
Lake Hills Motel · Hospitality Property For Sale · 6,374 SF

Lake Hills Motel – High-Yield Investment Opportunity in Warsaw, Missouri Asking Price: $995,000 Property Type: Motel / Hospitality Investment Location: Warsaw, MO Executive Summary The Lake Hills Motel in Warsaw, Missouri, represents one of the most compelling income-producing opportunities in the region. This is not a polished boutique hospitality asset—far from it. Instead, it is a cash-flow engine that rewards investors who value net operating income (NOI) and yield over aesthetics. The current owner reports $25,000–$30,000 per month in gross revenue, generated primarily from long-term weekly rentals and supplemental income streams from on-site video poker machines. Even conservatively, this translates into more than $300,000 annually in gross income. At the asking price of just $995,000, this offering equates to a cap rate of approximately 19–20% on reported income—placing it well above most other available investment opportunities in Missouri. Comparable income-producing properties at this return profile are rarely available, and those that do hit the market tend to move quickly. For an investor seeking cash flow from day one, this property deserves close attention. Property Overview 16 rentable units, all currently occupied on a week-to-week basis. Average weekly rent per unit: $200. Annualized gross rental income: ~$166,400. Supplemental income from video poker machines (owner-reported): ~$156,000 annually. Total reported gross annual revenue: ~$322,400. Estimated NOI (after standard operating expenses): ~$193,000. Implied market valuation at standard cap rates: $1.2M–$1.6M. Asking price: $995,000 — significantly below income and replacement value. The motel sits on a solid foundation, with a roof in good condition and mechanical systems reported to be functional. An outdoor swimming pool remains operational, offering potential for guest or tenant use. The property also includes a commercial kitchen, currently not in operation but still equipped—representing an additional revenue opportunity for a buyer who wants to reopen or repurpose it. Condition & Operations This is a no-frills, as-is sale. The rooms are dated, most tenants smoke in-unit, and cosmetic improvements are needed throughout. The tenant base leans heavily toward extended weekly renters rather than transient hospitality guests, which keeps occupancy levels consistently high but creates a very different guest profile than a standard motel. Despite the property’s rougher edges, the business model works. Cash comes in reliably every week, turnover is minimal, and the income streams are diversified between unit rents and gaming machines. Operations are supported by a long-term handyman/maintenance manager who lives on-site and has expressed willingness to stay on under new ownership for $2,000 per month. This provides continuity and offers investors the option to manage the property on a semi-absentee basis. Investment Highlights High-yield property: ~20% cap rate at asking price. Steady, reliable cash flow despite dated condition. Week-to-week tenancy model ensures steady income and flexibility. On-site management in place, ideal for investors seeking semi-passive returns. Upside potential through better management, unit renovations, repositioning, or activating additional revenue streams. Price well below replacement cost and implied valuation. Location Warsaw, Missouri, is strategically positioned near Truman Lake and the Lake of the Ozarks, making it a steady draw for regional travelers and long-term renters alike. The local market faces an affordable housing shortage, which has created strong demand for weekly rentals such as those offered at the Lake Hills Motel. The motel’s location provides consistent occupancy and ongoing demand, regardless of whether the property is operated as an extended-stay rental or repositioned into a more traditional hospitality model. Buyer Profile The Lake Hills Motel is best suited for: Investors seeking strong cash-on-cash returns at an affordable entry price. Buyers interested in a value-add opportunity in the hospitality or multifamily sector. 1031 Exchange buyers needing an immediate income-producing replacement property. Investors open to operating the property as-is with reliable cash flow, while planning long-term improvements for appreciation. Conclusion The Lake Hills Motel is not a luxury asset, nor is it marketed as such. It is, however, a rare, high-yielding investment with substantial upside potential. For under $1 million, a buyer can step into a property that already generates over $300,000 annually in reported gross income, supported by both rental and gaming revenue. Opportunities like this are scarce—particularly in a market where most comparable hospitality and multifamily properties trade at cap rates closer to 7–10%. Here, a buyer can secure nearly double the return at acquisition. Whether operated as a steady income property, repositioned for a higher-quality tenant base, or redeveloped in the future, the Lake Hills Motel offers investors an unmatched combination of cash flow, affordability, and upside. Asking Price: $995,000.