Developing Short Term Rental Cabins near Yellowstone

[Paul Bagi]

My partner’s and I are evaluating additional markets (in addition to the Smokies) to developing raw land to build 5-12 cabins (650-1200 sq. ft.) as short-term rentals. One market we’re currently looking at is around Yellowstone National Park.

We would love to speak with someone who has experience in development around Yellowstone and I’d love to take you out to lunch or dinner this weekend and pick your brain (7/30 through 8/1/2022).

In addition, does anyone experienced in the area have any recommendations on the following:

1. A real estate agent who has experience in short term rental investing and/or property development in the market around Yellowstone: Bozeman, Gardiner, West Yellowstone, or even south towards Jackson

2. A professional civil engineer for land planning/due diligence including issues surrounding septic permitting/installation.

3. General contractors in the area who I can contact for bids regarding costs and timeline for construction.

4. Local banks/portfolio lenders specializing in constructions loans.

Any thoughts on a realistic timeline from identifying a plot of land to due diligence, permitting, subdivision, and construction in this area (e.g. 2 years, 3 years, ect.)?

Thank you everyone in advance for your time, any advice is invaluable!

[Nathan Gesner]

Quote from @Paul Bagi:

My partner’s and I are evaluating additional markets (in addition to the Smokies) to developing raw land to build 5-12 cabins (650-1200 sq. ft.) as short-term rentals. One market we’re currently looking at is around Yellowstone National Park.

We would love to speak with someone who has experience in development around Yellowstone and I’d love to take you out to lunch or dinner this weekend and pick your brain (7/30 through 8/1/2022).

In addition, does anyone experienced in the area have any recommendations on the following:

1. A real estate agent who has experience in short term rental investing and/or property development in the market around Yellowstone: Bozeman, Gardiner, West Yellowstone, or even south towards Jackson

2. A professional civil engineer for land planning/due diligence including issues surrounding septic permitting/installation.

3. General contractors in the area who I can contact for bids regarding costs and timeline for construction.

4. Local banks/portfolio lenders specializing in constructions loans.

Any thoughts on a realistic timeline from identifying a plot of land to due diligence, permitting, subdivision, and construction in this area (e.g. 2 years, 3 years, ect.)?

Thank you everyone in advance for your time, any advice is invaluable!

I would like to try and help, but I'm on the east side of Yellowstone. I like to think it's the best part, but I'm partial.

You can forget Jackson. That's where millionaires get chased out by billionaires. Even if you could find/afford something, your only option is to wait for appreciation and sell for a profit because you'll never cash flow.

Only the North Entrance (Gardiner, MT) and the North-East entrance are open year round. I would forget the North-East (my favorite) because it's too hard remote. Gardiner is a good option because a lot of people with money are moving to Bozeman and you'll continue to see visitors year-round. At the same time, property prices are pretty high up there and you're not the first one to consider this neck of the woods.

Cody does really well May - September but then slows in the winter. My short-term rental makes double what I would get as a long-term rental and that's slowly improving. I either shut it down in the winter or put someone in it at a discount just to keep it full and prevent freezing.