Running #'s on Build-to-Rent in Yucca Valley?

[Dave Stanley]

Hi all,

There's tons of info on how to calculate ROI/cashflow/etc when buying and rehabbing SFRs, but very little when it comes to building new homes with the intention of renting for BnB. I have land in Yucca Valley CA and would like to build several 700-1000ft rental homes but don't know exactly how to run the numbers for this type of investment. Is it the same calculation as a typical purchase? I would think some of the values and % rules would be slightly different. I plan to rent BnB for as long as the market allows while maintaining a viable sale exit down the road.

I'm also still deciding between stick vs. modular and am leaning towards modular for energy efficiency (title 24/desert/off grid), quick timeline (builders in the area are booked 6-12 months), and ease of oversight.  Any thoughts?

Does anyone have specific/recent experience with build to rent homes in Yucca, Josh, or Twentynine Palms?  How did you run the #'s before taking out a construction loan and how did you factor estimated BnB rates into the equation?  

Thanks so much!!