Overview: Price: $149,000. ARV $170,000+ (Appraised value: $167k in May, 2018). Reason I am selling is to do a 1031 Exchange, get my cash out to re-invest in building another property. This price is not intended for the general public. Closing date negotiable but strong preference given to buyer who has a bit of flexibility on date. All offers welcome, but prefer either cash or strong financing with a deposit.
Enjoy the view of Lake Superior from the patio. Large garage and plenty of parking space for a trailer and all of your toys. Cabin is completely furnished, has many updates including all new plumbing and newer appliances, and all furnishings come with sale of the home. This is a 2 acre gorgeous lot that is mostly wooded on a small hill. BONUS: You can build a second structure on the property per zoning regulations and use the existing well and septic for it!
Location and outdoor recreation:
- Close to Superior National Golf Course, Lutsen Recreation Mountain and Ski Hill, Temperance River State Park and Carlton Peak with great trails and views.
- Short distance to Tofte Park on Lake Superior with boat access, Oberg Mountain with spectacular views, Cascade River State Park with gorgeous water falls nearby, and connects to the Superior Hiking Trail.
- Canoe, kayak, bike, snowshoe, ski, and snowboard rentals all available at nearby Sawtooth Outfitters.
- Great fishing, Dining and shopping just 5+ minutes away.
Everything setup for licensing, utilities and turn key:
- Water test passed, Septic certified, Well certified
- MN Dept of Health inspections passed
- MN Dept of Health license secured
- I can provide local contacts for cleaning and handyman service.
- High speed WiFi installed, phone installed
- Furnace and wood burning fireplace
More Photos: https://www.dropbox.com/sh/w0qurnh7yhasp64/AAAhDj9iaHfvwpR6qd7Picx7a?dl=0
Pro-Forma
- My family and friends used the cabin a lot, but we had high occupancy rates when we did vacation rental it. We did nothing to market the property, and used a local company Cascade Vacation rentals (only advertising they did was on their web site). No marketing was done on Homestead, AirBnB, VRBO etc. With that said, it was rented nearly every weekend and some weekdays when we made it available to vacation renters.
Income: $125-$155 per night. Rent it for half the year (182 nights) = $28,210 income.
Add 2nd small low cost cabin and double this to $56,420
Base expenses per month: Propane $70, Electric $90, Taxes ~$110, Insurance $100 = Total $270 per month / $3,240 per year.
Loan payment assuming 20% cash and 80% financing = $608 per month at current interest rate of 3.9% ($7,296)
Annual overall profit potential: Income $28,210 minus $10,536 expenses (from above) = $17,674 profit*.
Do your own marketing and hire a local cleaning company at approx $50 per guest stay (I can provide contacts). Or hire Cascade Vacation Rentals, but they take a 28% commission fee + cleaning fee and do NOT market on Homestead, VRBO etc.