Farm Development Project

[Jonah Slove]

Hey BP,

I posted a little about this project in another thread but wanted to post an update here. This other thread was more focused on the initial subdivision and purchasing process.  https://www.biggerpockets.com/forums/12/topics/1136927-land-...

I run a small organic farm in Victor, ID. 30 min from Jackson Hole and close to Grand Targhee ski resort in Idaho. I recently closed on the purchase of 12 acres with the help of a family loan, and the farm service agency ( 1.5% for 20 years). Now I am in the early stages of development.

I am working with a consulting firm to help with a concept plan, engineering, and to get the city to sign off on everything. I will create 6 residential lots that I will be able to sell off and then, ideally, own the remaining property free and clear or close to. I plan to use a HELOC for the improvements to create lots with improvements.

My plan for the rest of the parcel, now roughly 7 acres, is to built a primary home for my family, and to put in 5-6 cabins. These can be STR or LTR. Both have perks and strong demand here. I am working to build out some models for each but I don't have a clear idea of the route forward for construction or long term financing. I imagine the home I can use a construction loan or my heloc again to complete and then get a traditional mortgage as that will be on its own lot, but the cabins will all be on a large lot containing the farm itself. What type of lender or product should I consider? How will they value the land so I can look at LTV and other metrics when modeling my financials?