Portage Lakeside Cabins

[Matthew Morneault]

Investment Info:

Other commercial investment investment.

Purchase price: $470,000
Cash invested: $70,000

300' of lake frontage on 5 acres with 5 rentable units as STRs. A 6th unit is unfinished. The property also had room to add 3 RV pads.

What made you interested in investing in this type of deal?

The location, its my hometown and it's secluded solitude. I love being able to help people immerse themselves in the quiet of nature.

How did you find this deal and how did you negotiate it?

I was watching this specific market to find an STR close to my sister. The seller dropped the price from 640K to 500K. We negotiated through a realtor to settle at 470,000 with 10K cash back at closing for some needed repairs.

How did you finance this deal?

A commercial loan through a local credit union. 15 year note amortized over 25, so there's a baloon payment at 15.

Lessons learned? Challenges?

Be more confident and be more aggressive! AirDNA STR data is not always accurate.

[Dylan Brown]

This looks awesome!

Are you planning on doing the short-term rental loophole with this one?  It looks perfect for it!

I personally use the short-term rental loophole for my two AirBNBs in Minnesota and love it - it is the only way that you can create tax losses and offset W-2 or other active business income without qualifying for REPS.

Another cool part of your opportunity is the RV pads - if you play your cards right those can be almost entirely written off through accelerated bonus depreciation (especially if they bring back 100% bonus!!)

Reach out if you ever want to chat!