Buying a lot and placing an affordable design pre-fab house for Short Term Rental

[Germán Rimoldi]

I've been researching a market with a high demand for short-term rentals (STR) and favorable regulations.

Despite a competitive landscape, my strategy involves installing a unique design or pre-fabricated home on the property to make it stand out on Airbnb.

I've identified a parcel of land priced at $70,000 and a pre-fabricated model I'm interested in, which costs $42,000. To complete the project, I'll need to engage a local contractor for foundation work, septic system installation, and electrical setup.

1. Do you think this is a good approach?

2. Are pre-fab homes a viable option for obtaining a mortgage on the property in the future?

3. After completing my first construction project, how can I collaborate with the bank to leverage funds for subsequent builds?