Developing in phases - worth it?

[Sean Bramble]

Are there any of you who develop properties in phases, starting with some sort of "spec" property to start that then allows you to easily raise capital for phase 2 (and beyond)?

I am interested in buying land to build a multi-property short term rental development, starting with a single property. I would like to be able to build additional properties on the same land afterwards, but only have the capital to start with a single property. I'd like to use the success of the first to attract investment for the others.

I'm assuming this involves designing roads and utility infrastructure with the entire site plan in mind, but also realize this could mean more cost upfront than if you were only building the a single unit. Would be great to hear how developers think about a phased approach like this, and whether it's worth it or not! Is this common? What are all the things I should be thinking about?

Also - would love to connect if any of you are also building STRs!