Has anyone built (from ground up) a house for a short term rental?

[Tobi Isaacs]

Hi- Considering a lake house. What are the pros and cons of building from scratch for the purpose of STR? Has anyone done this? Thx

[Tanner Lewis]

It is a good idea as you can reduce repairs/maintenance and cap ex for the first couple of years. I would just check with your lender to verify that the property will be eligible for refinancing after the construction loan. I have seen a couple of new-build STRs that need refinancing, and they were hard to finance due to their being tiny homes, cabins, rural multifamily (with no comps), etc.