My wife and I bought a vacation home as a investment in Nothern WI. It was part of a resort
turned into a condo association
We bought it from ther orginail owner and son. Son is the property manager.
When we bought it we were given a sheet of paper which I have showing gross rent minus management fee of 30. Never saw his tax return Sch E ( my mistake)
So the rental history is this. New Cabin Opened in June 2008
Total income for 2008 was 22,100.00 Management fee net to owner 15,470.00
Total income for 2009 was 31,130.00 Managent fee net to owner 21,791.00
Total income for 2010 was 28,420.00 Management fee net to owner 19,894.00
We bought it at the end of the rental season of 2010. Based off those numbers it would pay for iself.
in 2011 gross rental was 18,000.00 minus his management fee since we kept him on to book it and rent it was 12,600.00
In 2012 gross rental was 19200.00 minus his 30 for a net of 13,444.00
So we now have fired him him is there any recourse on him giving us such falserental number. The same thing has happened to two other owneres who bought the same time. Resort was in finanical hardship. We all feel they made it look good and we fell for it. Over a ten year period that loss of 10k plus a year is a lot of money. What would you suggest? Thanks Gary