What is the potential liability of a motel owner who lives out of the country and is not a citizen of the US?

Good question. If you invest in a mini-motel in the United States where a lawsuit arises from an incident occurring at the unit you bought during your ownership of it and a judgment results against you where any policy of insurance does not afford complete coverage, all of your assets would be subject to the judgment and a levy, including those in the United Kingdom.

This is why you might consider creating a corporation or a limited liability company to hold title to the mini-motel that you are seeking to buy created under the laws of the state where the property is located. This would help create a form of insulation against any personal liability from any judgment arising from the ownership of the property.