Looking for advice on strategy for first STR

[Ethan Farr]

I have an opportunity to purchase a lakefront lot on Table Rock Lake near Branson, which is difficult to find to begin with, but this is also a lot that is has no short term rental restrictions. The lot is over an acre, and my plan would be to build a small vacation rental. I would love to hear any advice on the best way to go about financing this whole process. Considering I would need to finance a portion of the lot purchase and then finance the build, would the best approach be to take a heloc on my primary (which has more than 100K equity) and use a portion for the downpayment of each loan? Sorry if this question comes off as ignorant, I'm just starting out and any help would be greatly appreciated!

[Cole Schlack]

Quote from @Ethan Farr:

I have an opportunity to purchase a lakefront lot on Table Rock Lake near Branson, which is difficult to find to begin with, but this is also a lot that is has no short term rental restrictions. The lot is over an acre, and my plan would be to build a small vacation rental. I would love to hear any advice on the best way to go about financing this whole process. Considering I would need to finance a portion of the lot purchase and then finance the build, would the best approach be to take a heloc on my primary (which has more than 100K equity) and use a portion for the downpayment of each loan? Sorry if this question comes off as ignorant, I'm just starting out and any help would be greatly appreciated!

I would look for a second home lot/construction loan combo. I think it can be a good idea to build an STR to hopefully get the purchase price down and give you a buffer for the future if rentals dont stay strong.