Renovating a 1939 16 x 20 cabin

[Stein]

Hello, first post.

My name is John and I live in Nebraska. I just achieved my dream recently and acquired my own island. It has a cabin on it that was built in 1939.

The island is about 3-4 acres. The cabin structurally is in pretty good condition but has been vacant for 10-15 years so I have a lot of work in front of me. It had new electrical service run to the island 6-7 years ago but the previous owner never hooked it up. It has a well and septic, plus a brick fireplace.

Fortunately, it's only a 30 minute drive from home so it's easy to get out there for even a few hours to work on it.

It needs a lot of work. New roof, windows, update the electrical, new sandpoint and jet pump, all plumbing, water heater, cabinets. Pretty much everything. But, it was cheap.  It's a 10 year lease, not outright purchase.

Here's a Google maps shot of the island.



A couple of exterior shots.  I hauled all of the trash in front of the cabin across the ice today.




Going to need some elbow work to clean it up, but the dark wood should come back nicely.




It never had windows in the past, only these hinged screens.  I have just finished temporarily installing new windows to cut the cold.  It hasn't been over freezing for three weeks.  I can walk to the island right now.  It's been nice for moving materials over.  I built a large runner sled and have hauled lots of firewood over and trash back.



A couple of shots of how it looked the day I took it over.  It's been vacant for 15 years.




View from the front windows of the little cove that you can see in the first pic.



It has a brick fireplace, but I'm putting in a wood stove.  Too much heat loss with the fireplace.  It was never meant to be used in the winter as a heat source.



I got all of the electric working but it has new service run to the island that has never been hooked up and needs a new meter socket.  The inspector wanted to see the cabin before he OK'ed the socket.  Bummer.  It's an old cabin and was mostly Romex stapled to the beams.  The inspector said it all had to go.  So, I spent the day today tearing out everything that was in it.  All new wiring in conduit going in this week.  The good thing is, the owners are paying for all of the electric install!  

Can't wait until the electric is done.  I have been running off of a generator thus far.

After the electric is done, it's time to start the serious cleaning and scrubbing, sand the floors, new kitchen.  Roof will wait until spring.  New Year's weekend I'll get some more photos.  It looks MUCH better already.

[MountainDon]

   Having an island sounds cool.     Yours is the only place on it? Is it public access or treated as private property?

How does that 10 year lease work with any improvements you make? You did mention that the owners are paying for the electrical upgrade... I guess that is materials and you contribute the labor.

[Stein]

It's kind of a weird deal.  Some guys that I know bought the lake (it's a private lake).  I wanted the island and cabin but they couldn't sell just the island so I worked out a long term agreement.

10 years, $1,600 per year, I supply the labor and the first three years' worth of payments ($4,800) I can spend on materials for improvements.  The next seven years I just pay them the $1,600 as a lease payment.  After the 10 years it goes to a year to year lease with first right of refusal, so I can keep it as long as I want to and can't be kicked out, even if ownership of the lake changes.

Yes, I am the only one on the island, but there are some camping spots on the shore of the lake, as can be seen in the first picture.

[glenn kangiser]

Sounds like a pretty cool deal - is that a lighthouse in that one picture?

[Barry Broome]

Nice, that post beam work looks likes its still in good shape.

[Redoverfarm]

At first glance it sounds like a good deal and would be an ideal location.  But at looking at the condition of the cabin I doubt that the first three years material in lieu of lease payment will come close to the amount of repairs/renovations needed. You stated that you signed a 10 year lease.  What is binding the owners to allow you to continue with the agreement after the 10 years expire?  Yes it is a good deal but for who? I hope that it is not one sided for the landowner.  Hope everything works out for you.  Keep us posted on the transformation.

[Stein]

At first glance it sounds like a good deal and would be an ideal location.  But at looking at the condition of the cabin I doubt that the first three years material in lieu of lease payment will come close to the amount of repairs/renovations needed.

I'm pretty confident in my budget.  The budget is materials only.  I'm actually already ahead about $400)

Build and install floating dock approx 8' x 12'                               $300.00
Replace shingles and chimney flashing                 $800.00 Eight square three tab @ $512, plus flashing, drip edge
Replace screens                                            $100.00 (windows were combination units so +$100)
Inspect and repair wiring in entire structure              $200.00 (no longer needed, so +$200)
Install windows - five large and five small)              $800.00 (purchased for $708 shipped so +$92)
Repair shutters                                             $50.00
Rebuild lean-to for water heater and pressure tank          $150.00
Install kitchen sink/countertop/cabinets                     $300.00 Located used for $200-actually match the color well.
Install small stove and refrigerator                   $470.00 (Used apartment sized stove purchased for $50)
Replace water heater                                   $150.00 (I'm light on this now that I look more)
Install pressure tank                                   $100.00
Repair plumbing                                           $150.00 (might be a bit light)
Route sink drain to septic instead of draining into lake           $20.00
Install well pump and sandpoint                   $250.00 Located for $150 and $68, plus $30 for pipe)
Toilet and septic repairs                           $100.00 Not likely needed, other than new wax gasket and flapper
Refurbish bathroom                                   $200.00
Caulk and Linseed oil the exterior                                         $200.00  Don't know what I will do on this, if anything
Repair doors, cabinets and inside wood furnishings          $100.00
Sand and finish floor                                   $150.00
Clean/oil entire interior woodwork to retain original character.     $50.00
Paint interior white panels                            $50.00
Install light fixtures                                   $100.00

Total                   $4,800.00

You stated that you signed a 10 year lease.  What is binding the owners to allow you to continue with the agreement after the 10 years expire?  Yes it is a good deal but for who? I hope that it is not one sided for the landowner.  Hope everything works out for you.  Keep us posted on the transformation.

After the 10 years it is year to year with first right of refusal.  So, I always have first option to continue each year.  After the first 10 years the pricing is tied to another small cabin on the shore.  It rents currently for $400/mo.  If in 10 years it goes to, say $500, I pay $500 x 6 months for my year lease.  If it stays at $400, I pay $400 x 6 months for my year lease.  So, both the landowner and I are safe that I am paying market value after the 10 years.

It's a good deal for me.  If I would have bought it, the taxes and insurance would have been more than $1,600 a year in this tax hell of a state.

[bayview]

At first glance it sounds like a good deal and would be an ideal location.  But at looking at the condition of the cabin I doubt that the first three years material in lieu of lease payment will come close to the amount of repairs/renovations needed.

I'm pretty confident in my budget. 

Build and install floating dock approx 8' x 12'$300.00
Replace roof and chimney flashing                   $800.00
Replace screens                   $100.00
Inspect and repair wiring in entire structure                   $200.00
Install windows - five large and four small)                   $800.00
Repair shutters                   $50.00
Rebuild lean-to for water heater and pressure tank                   $150.00
Install kitchen sink/countertop/cabinets                   $300.00
Install small stove and refrigerator                   $470.00
Replace water heater                   $150.00
Install pressure tank                   $100.00
Repair plumbing                   $150.00
Route sink drain to septic instead of draining into lake                   $20.00
Install well pump and sandpoint                   $250.00
Toilet and septic repairs                   $100.00
Refurbish bathroom                   $200.00
Caulk and Linseed oil the exterior to prevent further damage                   $200.00
Repair holes in walls                   $10.00
Repair doors, cabinets and inside wood furnishings                   $100.00
Sand and finish floor                   $150.00
Clean/oil entire interior woodwork to retain original character.                   $50.00
Paint interior white panels                   $50.00
Install light fixtures                   $100.00

Total                   $4,800.00

You stated that you signed a 10 year lease.  What is binding the owners to allow you to continue with the agreement after the 10 years expire?  Yes it is a good deal but for who? I hope that it is not one sided for the landowner.  Hope everything works out for you.  Keep us posted on the transformation.

   Plus your labor . . .

/.

[Stein]

   Plus your labor . . .

Sorry, I hit "post" instead of "preview" earlier.  I updated that post.

The labor is reimbursed in the reduced lease payment of $1,600 for year 4-10.  After 10 years, I'm planning on around $3,000 per year, so I am "saving" about $1,400 a year for seven years, or $9,800 over that time.  I estimated 400 hours, so I'm paying myself around $25/hr for my troubles.  Plus, it's so much fun to work on it.  Kind of like a remodel that you can close the door and walk away from instead of trying to live in it while it's being done.

[Stein]

Sounds like a pretty cool deal - is that a lighthouse in that one picture?

Yes, it's 107 feet tall and is on the National Register of Historic Places.  It was also built in 1939.

The lighthouse was built as the ticket booth for the public beach. Back in the 30's when the beach was developed, it was the train stop on the railway from Lincoln and Omaha. Thus, the beach's name was Linoma. The lighthouse has 10 floors in it. Back in the day you could climb it and there were souvenir shops on each floor to buy trinkets, etc. An early version of a tourist trap. The new owners of the property plan to restore the lighthouse to it's original glory.

When it was built in 1926, the beach was a "destination" stop where people would come out from the city and spend the day. There was an outdoor dance hall, concessions, beach and a restaurant. Remember, this was in the 30's, 40's and 50's. Things were a bit different (slower paced) then.

I remember even in the 70's that it was a treat to go to Linoma Beach when I was growing up. You have to realize that in Nebraska there are very few lakes and virtually all lakes are man made lakes, all mud bottom lakes in farm country so the water quality is very poor. These sandpit lakes on the contrary are all sand bottom so they are pretty clean.

Here is a bit of history on the property.

Linoma Beach was opened in 1926 by co-founders Lawrence Simpson and Harry Shellberg. Simpson was in the lumber business and Schellberg owned Lyman-Richey Sand Company.

They created the "pleasure resort" as one of the main projects of their development company, Linoma Realty.

The lake began as a sand and gravel pit more than 100 years ago. Lyman Richey bought the land in 1907 and quarried there for eight years, creating small lakes fed by underground springs.

When Simpson and Schellberg bought the land in 1924, they came up with the name "Linoma" to indicate the proximity to the area's major cities. They invested $10,000 each into the project, moving 30,000 cubic yards of sand to create a crescent-shaped beach 100 feet wide and 600 feet long around the lake. They soon added picnic and camping areas and recreational buildings.

In 1924, the Gazette described the bathhouse as follows: "A model sanitary bath house was constructed. Plate glass mirrors, electric lights and many conveniences furnish the bathhouse.

An existing farmhouse was converted into a restaurant. A veranda that surrounded the structure became the dance floor. Chicken dinners were offered for 25 cents.

The area was easily accessible by car or train. The Detroit-Lincoln-Denver Highway (now Highway 6) brought visitors by the carload. Simpson felt train access was necessary and he convinced the railroad to stop at Linoma. A platform was built and as many as three trains stopped on Saturdays and Sundays.

The lighthouse was not built until 1939. Its original function was as a filling station and landmark for travelers.

In the May 24, 1939 Gazette, the lighthouse was described as a building "octagonal in shape" built of steel lattice and stucco and illuminated by flood lights.

"The building will boast a tower which will rise 100 feet above the parking area," the article stated. "This tower will have a circular stairway and present plans are that it will be open to the public as an observation tower from which may be seen fine views of the Platte valley."

In 2003, the property was named to the National Register of Historic Places

[bayview]

   Does the lease allow you to possibly add more cabins?

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[Stein]

   Does the lease allow you to possibly add more cabins?

/.

Definitely not, nor would I want any more on the island.

[speedfunk]

very cool.  I think your arrangement also sounds good. 

it should be fun to watch. gl