For the First Time….
A limited number of Lake of the Woods Resort cabins are available for sale at the resort. These cabins are 4 ½ to 5 years old and have a proven rental history. They were custom built to accommodate the four season environment at Lake of the Woods and will range in price from $65,000 to $185,000. Incomes for any specific cabin for 2008 snd 2009 are available upon request.
The cabin buyer will receive full title to the cabin subject to a 20 year permit. As you may know, all the land around the lake is owned by the Forest Service. So if you choose to buy a $100,000 cabin at the resort or a $1,000,000 cabin on the other side of the lake, the permit will be similar. The opportunity we have available is to someone who will use the cabin 30 days or less during the season (May 1 to March 31st) and allow us to rent the cabin out through our property management division for the balance of the season. We will handle the reservations, housekeeping and common area maintenance, so when you want to use the cabin it will be clean and ready to go. None of your vacation time will be spent with cleanup and maintenance. These cabins are fully furnished and “turnkey” ready.
The following is an example of how it works. I have used cabin #24 and its income for the 2009 season. Cabin #24
Vacation Rental Investor Return Based on Actual 2009 Income
Prop Mgt Fee Maintenance 20 Year Return
Income 30% of & Annual LUA on
May- Sept. Net Utilities Fee Net Price Investment
Cabin 24 $16,169 $4,077 $1,380 $1,200 $9,512 $120,000 7.9%
Vacation Rental Investor Return Based on Actual 2008 Income
Prop Mgt Fee Maintenance 20 Year Return
Income 30% of & Annual LUA on
May-Sept. Net Utilities Fee Net Price Investment
Cabin 24 $16,845 $4,280 $1,380 $1,200 $9,985 $120,000 8.3%
*Maintenance includes: housekeeping, and utility reimbursement and common area maintenance for operating season.
** Limited use agreement rent may increase annually to meet increased cost of operation not to exceed 10-%
*** In addition according to the U.S. Master Tax Guide, Sec. 966, p. 6331
Vacation Home Rentals “operation expenses other than depreciation to the Rental income are deductible”. The resort fees $3,838 (2009) & $4,280 (2008) $1,380, and $1,200 would be deductible against the net income for tax reporting purposes.
For additional information please fill out the form below.
Thank you for your interest in our Forest Service approved cabin sales program.
John Doherty & George Gregory
