VRBO Minnesota Cabin Investors
I am completing a 1031 exchange and was looking at putting the money into an investment cabin in northern Minnesota.
Anyone doing this? Happy to buy lunch or dinner and get some pointers.
Ideally want nicer cabins 300 plus Purchase price, but am unsure if it is easy to break even or better using it for personal use from time to time.
Most Popular Reply
@Michael Tempel If you purchase a vacation rental you will want to talk to your CPA and intermediary regarding any personal use. A 1031 exchange is only for business assets. We have structured many of these business to personal conversions but there is a time element to it, you can't spend time there right out the gate.
Also Duluth has a separate vacation rental license that is non-transferable and I believe they only allow 60 licenses in the entire city. I would talk to the city about this before jumping in to make sure you can get a license. Surrounding areas are probably a bit easier.