Vacation "Dude ranch" acquisition North of Muskegon, MI

[Jacques Cyr]

Hey SW MI BP members (and any others that feel like chiming in...),

Have a nice log home (sleeps 10+) under contract north of Muskegon, MI 

Home is part of a local "Dude Ranch" theme resort area, which includes: Golf course, two water parks, etc..., and has recently had a large influx of cash by new owners (out of bankruptcy), and located within a nice Western MI coast region. (Association dues: $150 / month - includes cable, trash, snow removal, etc... Electric and Heat would be separate. 

General stats are as follows....
1.) ARV are around $134K (or perhaps a little higher)
2.) Acquisition: Upper $70's, and as for updates - "maybe" needs laminate floors in Kitchen, and perhaps some new cabinet (standard) doors to update. Target: $5-10K (on the high-end).
3.) Because of location, this could be 
4.) Nightly rents are $400 per night during session (though mgt fees are 50/50 split). 

Running the numbers, the thought process is as follows: 
1.) If the 'cost of money is roughly $600 per month, this equates to ~30 nights (through Management company), fewer nights if we were to engage AirBNB type service, and find local cleaning / turn-over service. 

Anyone familiar with Double JJ resort? Good / Bad / Ugly...

Also... since this is a bit out of the "norm" for me. Thoughts on the AirBNB or Property Management service approach? 

Constructive concerns?.... 

[Kase Knochenhauer]

Jacques, that sounds like it could be a good opportunity. However, I have a few concerns:

Check association bylaws - $150 isn't bad for what it offers, but there might be some surprises buried in the details.

High overhead - 50% Property Management fees are high in this area. Typically, I've seen weekly rental management fees of approximately 25% in West Michigan. I don't see why you couldn't bring that much lower.

Nightly rate - $400/night seems unrealistic. Without seeing the property of estimate nightly rent closer to the $100-140/night.

How many weeks per year do you expect to rent the unit? With summer rentals in West Michigan we expect about 10 weeks. Given the indoor water it will likely perform well in the fall and spring as well, so I'm not quite sure what to account for.

Please let me know if I can be of any more help!