For the First Time….
A limited number of Lake of the Woods Resort cabins are available for sale at the resort. These cabins are 3 ½ to 4 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 $140,000. Incomes for any specific cabin for 2007 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 $95,000 cabin at the resort or a $950,000 cabin on the other side of the lake, the permit will be the same. The opportunity we have available is to someone who will use the cabin 30 days or less during the season (May 1 to Oct 1) and allow us to rent the cabin out through our property management division for the balance of the season. Outside the season (Oct 2 to April 30) the cabin is yours to do as you please. 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 #20 and its income by month for the 2007 season
Cabin #20
Income 2007
May June July August September Total
$378 $ 1901 $ 5,981 $4,906 $ 1,195 = $ 14,361
Vacation Rental Investor Return Based on Actual 2007 Income
May – September (Season)
Property
Income Mgt. Fee Maintenance Limited Use Net 20 yr. Lease Return
(30% of Net) & Utilities Use Agreement Income Consideration on vestment _
$14,361 $3,534 $1,380* $1,200** $8,247 $95,000 8.7%***
*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 $2,894, $1,380, and $1,200 would be
deductible against the net income for tax reporting purposes
For additional information please contact george@lakeofthewoodsresort.com
