Cabins
for sale * Northern
Minnesota Cabins for sale * Lakeshore Cabins
National
Park Condos
Investment
Cabins with Cash
Flow!
Private
Rental Cabins for
sale with the benefits
of
Northern Lights
Resort & Outfitting
Welcome to
National Park Condos (NPC)
of Northern Lights
Resort
& Outfitting (NLRO). NPC is the next generation of NLRO
in
which the business operation is separated from the cabin/lodge
ownership.
NLRO will continue to operate as a destination resort and share the
cabin
revenues with the Owners of the rental units. The cabins front a
wilderness chain of border lakes (Minnesota/Canada) of Voyageurs
National
Park and are surrounded by park land. This is one of the largest
and last parcels of private land. These investment cabins
generate
$9,200 to $45,300 per unit during the summer. Have fun and enjoy
a great investment. Try first by renting a unit. Any rent
paid
will be credited towards your purchase.
See
these beautiful lodges
and then check out all of the details:
NPC is a
recreational investment
where owners are guests in their own cabins/lodges and have income and
appreciation without work or worry. Owners will own their unit
24/7/365
until they sell it.
Ownership will
include:
-
the structure
and the lot it is situated
on
-
one or more
dock slips
-
a parking
space in a common garage
unit for the first 4 buyers and thereafter as permits to build are
available
-
and a share
of the balance of land
and lakeshore - There is a total of 1270' of shoreline and 13
acres.
The lots occupy approximately 2 acres
-
Use of
private laundry for owners,
garage storage lockers and use of guest apartment
-
Use of all
services (free and rental)
available to NLRO guests including canoes, kayaks, bikes, games, water
toys, sauna, dock space, rental boats and motors.
The areas
designated “limited common
element” are reserved for use by the nearest adjoining cabin.
NPC is a
development which requires
all owners to have their units in the rental pool and rented by the
management
company when they are not occupying the unit personally (no personal
rentals
are allowed). The amount of personal use is open except for those
who want to treat their investment as “Investment Real Estate”.
Investment
Real Estate has conditions specified by the IRS tax code for the amount
of personal use. Buyers should address these conditions with
their
tax advisor.
Maintenance
and management will
remain, as it has been, with Tom and Pat Ossell (or their assigns under
Tom and Pat’s supervision), assuming the performance is satisfactory to
the Condo Association. Every Owner is a member of the Condo
Association
and has one vote per ownership unit.
The following
information is available
in this web page:
(click on the
link to be taken to that
section of the page)
|
REVENUE SHARING
AND INCOME HISTORY
OF CABINS:
The Owners will
pay their own real
estate taxes, insurance, utilities and association fees. The
owners
with their unit in the rental pool 8 of the 10 prime weeks, will get
75%
of the rental income. Owners with units in the rental pool less
than
8 weeks, will get a 50/50 split of rental fees.
The substantial
growth has been
with about $800,000 spent on capital improvements and continual rate
increases.
The following are
gross revenues
collected from each cabin for the years indicated:
National Park Condos
Cabin Rental Income for 2001
through 2007
|
Cabin
|
2007
|
2006
|
2005
|
2004
|
2003
|
2002
|
2001
|
| Bass |
$ 9,275 |
$ 9,300
|
$ 6,830
|
$ 7,050
|
$7,450
|
$7,250
|
$1,750
|
| Bear |
$17,500 |
$16,500
|
$18,320
|
$16,550
|
$13,950
|
$11,650
|
$6,550
|
| Caribou |
$14,350 |
$12,700
|
$11,020
|
$ 9,850
|
$10,050
|
$11,450
|
$4,750
|
| Deer |
$17,500 |
$14,500
|
$12,200
|
$14,850
|
$13,350
|
$14,450
|
$9,850
|
| Fireside |
$48,200 |
$45,300
|
$42,080
|
$40,650
|
$29,750
|
$34,050
|
$14,850
|
| Moose |
$30,350 |
$29,700
|
$32,430
|
$28,950
|
$31,050
|
$24,550
|
$16,450
|
| Musky |
$23,725 |
$20,200
|
$16,510
|
$19,750
|
$16,950
|
$14,350
|
$13,150
|
| Northern |
$16,750 |
$15,200
|
$12,140
|
$15,950
|
$16,050
|
$17,750
|
$10,450
|
| Sunset |
$14,600 |
$14,700
|
$ 8,400
|
$12,050
|
$12,550
|
$11,150
|
$6,550
|
To view pictures and layouts
of the cabins, click
on the cabin name.
To view
the property layout
and lot lines, click here.
INCLUDED
SERVICES, BENEFITS
AND ASSOCIATION FEES:
The management
company will:
-
Advertise and
promote the resort
-
Staff, manage,
and maintain the property
and cabins
-
Provide the
linens and cleaning of
the cabins
-
Manage and
maintain the private sewer
and water systems
-
Provide off
season remodeling on a
cost + basis
| An
estimated budget has been set
up to cover spring opening and cleaning of the cabins, dock systems
in/out
and maintenance, roads, beach, grounds work and mowing, system costs
for
sewer and water, tree trimming, garage maintenance, garbage and a
reserve.
The actual costs will be reviewed annually, reported to all members,
and
adjusted as needed. |
 |
All
cabins are being sold
furnished and equipped for rentals. Furniture replacement,
decorating
or major repairs will be handled by the management company but paid for
by the individual owner (some of which will be paid out of the reserve
of each cabin's association fee). Proper maintenance &
regular interior upgrading will be required to provide the best
revenues.
The monthly association fee is being kept as low as possible and will
be
approximately $90 per month plus $.02/sq. ft. of the unit.
Owners may
choose to make improvements
beyond the minimums or do extras to further enhance their unit.
Enhancements
will be displayed on the web site and recorded with higher rates and
likely
higher occupancy. A nominal cleaning fee will be charged after
each
owner's personal use. A garage space will be provided to the
first
4 buyers and more garage will be built as needed and provided permits
are
available.
Also provided
for owners is a private
laundry, year round guest apartment and garage storage units.
PETS:
It has been the
policy of the resort
not to allow pets. That policy will remain with the exception of
owners' personal pets. No more than 2 pets per owner family and
it
is expected that all owners will properly and immediately care
for
and pick up after their pets. A kennel will be built behind the
shop
to house barking or mis-behaving pets.
SUGGESTED DUE
DILIGENCE OF CONTEMPLATED
PURCHASE OF NATIONAL PARK CONDOS:
Income
potential: Compare
Northern
Lights Resort & Outfitting (quality, facility and rates) to the
other resorts on the Kabetogama, Crane Lake chain, Vermilion and Rainy
Lake for facilities, cabins, dock system, amenities, activities and
setting.
That comparison will give you a sense of vacation values and the
potential
for cabin rental performance.
Cabin value
comparisons and Benefits:
Call local Real Estate Agents in all of the above areas and look at
other
cabins for sale and see how they compare to the cabins, grounds, beach
and benefits of NPC. Compare values of private cabins vs. NPC
cabins.
At NPC there are quality cabins on private owned lots, good roads,
marina,
beach, good sewer system, softened water well, maintenance, management,
activities and amenities, private laundry and garage space. Do
the
math! Consider the annual cost to maintain a private cabin and
make
the payments plus do all yard and other work or hire the work done to
maintain
the cabin and look after the security of it. NPC will have year
round
residence managers.
FACTORS THAT MAY
AFFECT APPRECIATION:
Limited
amount of private land:
The Voyageurs National Park is 219,000 acres of wilderness water,
islands
and remote land with only 4 land based entry points of which Kabetogama
is one. Each entry area (Kabetogama, Ash River, Crane and Rainy)
has very little private land. There are less than 40 resorts
through
the system of lakes and into Rainy. Northern Lights Resort has 13
acres and 1,270 feet of shoreline. This is one of the largest
private
lakeshore parcels and has one of the newest and most progressive
engineered
sewer systems. There is shoreline on the lake that can not be developed
because the soil conditions can not handle a sewer system (some cabins
are on holding tanks for sewer or water tanks for domestic
water).
Private property availability is limited and demand is growing.
The
wilderness will be preserved as a National Park.
Kabetogama: a
better value in
lake shore: Lake shore on Vermilion and Rainy has been higher
priced than on Kabetogama which is located between them.
| Easy
access: Although
a pristine wilderness area 300 miles north of Minneapolis / St. Paul
there
is 4 lane highway to within 75 miles of the resort and that last 75
miles
is 3 lane (alternating passing lanes). Like Wilderness Mountain
land
in Colorado there are commercial airline connections and daily flights
to the International Airport of International Falls, Minnesota.
The
International Falls Airport opens the area to the world which may be a
component for appreciation. |
 |
Statistical
appreciation for
lake shore in St. Louis County: This information can
be
obtained through the St. Louis County Assessor's office.
A
recreational investment for
the times: NPC captures a desirable environment with long
vista
views of wilderness water and islands. A view and environment
guaranteed
not to change as it is a National Park. NPC has good value, the
extras
of activities, amenities, a garage, private laundry, maintenance,
management,
income, financing terms of 1% above prime after 20 to 25% down and
security.
Care free ownership with income in a limited available environment.
PRICES AND SALE
TERMS:
The following
are the prices per
cabin, down payment required, payments, association fee, estimated
rental
income and owner's expected annual payments. Owner financing is offered
at the seller's bank rates or a match of whatever the buyer can
obtain.
A cash sale is not preferred but will be accepted.
Unit Prices with
Projected Cash Flow
5.5% Guaranteed Yield for the first two years!
NO Real Estate Taxes, Association Fees or Insurance for the first two
years!
|
Cabin
|
Price
|
25% Down
|
Approx.
Yearly Payment*
|
Annual Fees:
Real Estate Taxes, Association Fees &
Insurance**
|
5.5% Guaranteed Yield***
|
Gain/(Loss)
|
| Bass |
$165,000
|
$ 41,250
|
$ 8,666
|
$0
|
$ 9,075
|
$ 409
|
| Bear |
$280,000
|
$ 70,000
|
$14,706
|
$0
|
$15,400
|
$ 694
|
| Caribou |
$215,000
|
$ 53,750
|
$11,292
|
$0
|
$11,825
|
$ 533
|
| Deer |
$250,000
|
$ 62,500
|
$13,130
|
$0
|
$13,750
|
$ 620
|
| Fireside |
$600,000
|
$150,000
|
$31,513
|
$0
|
$33,000
|
$ 1,487
|
| Moose |
$450,000
|
$112,500
|
$23,635
|
$0
|
$24,750
|
$ 1,115
|
| Muskie |
$385,000
|
$ 96,250
|
$20,221
|
$0
|
$21,175
|
$ 954
|
| Northern |
$290,000
|
$ 72,500
|
$15,231
|
$0
|
$15,950
|
$ 719
|
| Sunset |
$270,000
|
$ 67,500
|
$14,181
|
$0
|
$14,850
|
$ 669
|
* The Approximate Yearly Payment is calculated assuming a 30 year
mortgage
at an interest rate of 5.75% (a home equity rate).
** Management pays real estate taxes, insurance & association fees
for the first two years
*** 5.5% Guaranteed Yeild for the first two year
Only 3 units will be sold in
2008, then the project
will be off the market. All remaining unit prices will
increase
and the offering will return on the market in 2009. There is a
scarcity
of private property and area property values are rising much faster
than
the value of money.
IRS TAX
INFORMATION FOR INVESTMENT
REAL ESTATE
Tax treatment of vacation property
depends on how owners
use the property. If the taxpayer does hold it out for rent,
Section
280A vacation home rules apply. The level of personal use must be
considered and the 14 day or 10% of rental days test must be
applied.
The use of deductions including (1) interest and taxes, (2) operating
costs,
(3) depreciation will be determined by the level of personal use and
will
need to be allocated. Please consult your tax advisor to assess
your
unique situation.
Investment
Comparison:
Consider the
comparison of purchasing
an investment cabin at Northern Lights Resort to buying an individual
cabin.
Using a $250,000 cabin for our example and including the tax benefit
(assuming
a 40% tax bracket), a Northern Lights investment cabin would have out
of
pocket costs for everything of about $10,145 and a tax loss of $24,296
or for someone in a 40% tax bracket it is almost a break even.
Assuming
the same interest rate on a mortgage, an individual cabin would cost
$22,000
per year if it was not in the Northern Lights rental program and
therefore
not receiving income and investment stautus write offs. This of
course
is only the financial benefit. Also consider the maintenance
benefit
of not having to mow the lawn, put in and take out the dock, or
maintain
the beach. When you spend time at your Northern Lights investment
cabin, you spend your time enjoying the cabin and the lake.
SPECIAL
ATTENTION DISCLOSURE
Tom and Pat Ossell are the owners of
NLRO/NPC. Tom
is a licensed Real Estate Broker and Pat is a licensed Real Estate
Sales
Agent. It is the desire of Tom and Pat that all buyers are well
informed
about all aspects of such a potential purchase. Future income and
potential for appreciation are not being mentioned. Tom and Pat
plan
to own one or more units for themselves. We highly recommend
proper
investigation and due diligence. The area on the map designated
as
"additional real estate" is planned for a 4 unit 2 story building.
CLOSING COMMENTS
AND ALTERNATIVES
The owners, Tom
and Pat Ossell,
thank all present and former guests for their patronage to Northern
Lights Resort Outfitting Any cabin rental fees that previous
guests have paid since 2003 shall be a credit against the purchase
price
as a thank you for being our guest. It is our desire to have a
congenial
group of investor owners with similar attitudes for the prospering of Northern
Lights Resort Outfitting; owner guests who will feel the pride of
ownership
of NLRO and will spend time at the property in and out of season.
Northern Lights
will always remain
an operating resort. When reviewing this information you may
think
that this investment isn't right for you for the long term because when
you retire you may want to live there full time in the summer and being
that the units must be in the rental pool 6 out of the prime 10 weeks
that
doesn't give an owner that option. The property adjoining Voyageurs
National
Park is appreciating at an unbelievabel rate. National Park
Condos
is an investment that will keep pace with area appreciation. When
you are ready to retire, either continue to hold NPC as an appreciating
investment or sell the NPC unit and buy an area single family home to
live
in all summer. Property in this area is increasing much faster
than
the value of money or what most people can afford to save.
This is an offering for a recreation investment, it just happens
to have a lot of fun and services attached to it. When the
project
is entirly sold out the operation will be governed by the owners.
To retain the property as "investment property" and take advantage of
the
related deductions, discuss with your accountant if you may use the
unit
more often than the IRS guidelines by paying the market rental rates,
for
which you are returned 75% on the rental split.
If the time for
such a purchase
is not right for you, or this concept is not the right match, we hope
that
you will continue to be NLRO Guests. As an alternative to NPC,
check
out Vermilion Estates at www.vermilionestates.com.
This is a common interest community of Lake Vermilion access lots which
has a community sewer and water system. This is a scenic big
timber
parcel where you build exactly what you want. This property is
within
5 miles by road and 2 miles by water to Fortune Bay Casino and “The
Wilderness”
Championship Golf Course. If you are not ready to purchase at
this
time, and want to be kept on a lease let us know.
HOW TO CONTACT US
If you have
questions about National
Park Condos or want to come out and see the cabins, please contact us:
Tom &
Pat Ossell
1-800-318-7023 or
612-805-9646
(cell)
e-mail:
ossell@nationalparkcondos.com
945 Osprey
Boulevard
Bayport, MN
55003
|
Copyright 2000-2007
Northern Lights
Resort & Outfitting; All rights reserved.
This site can not be
reproduced
in any form unless written permission from the owner is obtained.
|
