- 7 -
rental income from the timeshares of $3,480 and $3,579.36,
respectively.
Prior to the purchase of the timeshares, petitioner had some
previous experience with owning rental property. Petitioner had
purchased a condominium on Cape Cod, Massachusetts, in 1985, and
sold it in 1988 at a profit of around $20,000 to $25,000.
Petitioner rented the Cape Cod property to one individual as a
residence. Petitioner decided that he could do better by renting
a property at $110-$150 per night, similar to a hotel or motel.
Petitioner looked at properties in Orlando, Florida, and Myrtle
Beach, South Carolina, and other places along the east coast.
Petitioner's investigation revealed that southern locations were
patronized heavily in the winter and lightly in the summer.
Petitioner saw advantages with B'Mae's Resort. The resort was
located on a resort lake, was close to snow skiing facilities,
and was also a suitable venue for viewing fall foliage. Thus,
petitioner expected it would be well patronized for several
months out of the year. In addition, the timeshare interests
offered for sale by B'Mae's were suites, and petitioner thought
that suites, compared with single rooms, would be an advantage to
families. When B'Mae's decided to add a new wing of condominiums
and offered quarter (13-week) timeshare interests in the
properties, petitioner decided to purchase the timeshares.
Petitioner felt that the timeshares had a good potential for
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011