Waterfront Resort for sale...need help analyzing
Need help in analyzing a seasonal resort/rental property I am looking to buy with my partner in Minnesota. Currently I have 3 rental SFH rental properties and feel comfortable analyzing these deals, but never have analyzed a resort property.
The deal...
$800,000 asking price for the resort, boats, all furnishings
180' Lake front, ~1 acre land, 7 cabins, 1 main house
Currently the resort is rented out in the summer for 13 weeks. Resort income each week is ~$950/cabin = $6,650 for all cabins each week. Totaling $86,450 if at 100% occupancy. 75% of the guests are return from year to year.
During the other 9 months of the year the resort is rented out to mainly local college kids. Rental income each month is ~$750/cabin = $5,250 for all cabins each month. Totaling $47,250 if at 100% occupancy.
Total Income for the year: ~133,700
There is a 4 bedroom house that is on the property which my partner will live in while there and take care of the day to day needs. What would be a proper salary or pay for my partner?
We are looking at doing seller financing with either $100,000 or $200,000 down as the seller is being flexible with us.
There is also talks of the city putting in city water on the resort, not sure what this would run us in assessments but think it is noteworthy.
Anything else I am missing? And any help I can get would be great!