New to searching for land for STRs - Looking for general advice
Laura CasnerPro Member
New to Real Estate · Knoxville, TN · Member since 2022 · 52 posts · 14 votesNew to searching for land for STRs - Looking for general advice
Most Popular Reply
Contractor · Atlanta, GA · Member since 2016 · 49 posts · 26 votes
2yHey @Laura Casner I am in the process of building an 800 sq ft A frame from DEN Outdoors on 1.8 acres near Ellijay. Some really great points have been brought up already and one I would emphasize is site utilities. On these sloping lots you need to be hyper aware of where you can place your septic tank and drain field. For example in the county I am building in you need to have your drain field at least 100' away from your well and there is a maximum amount of slope the drain field can sit on. It also has a distance it has to be from flowing waters like a creek. Additionally keep in mind a well drilling truck is about as heavy as a fully loaded concrete truck and as long as a school bus so access for your well location will drive your feasibility as well. As previously mentioned here getting power to the site can be tricky. You can pretty easily see where the closest power is whether it's a power line or under ground utilities with a transformer. Keep in mind power will only run so far without adding an additional transformer due to voltage drop. This would really only apply if you were building on a 10-20 acre site and your properties were pretty far from the main lines. Happy to answer any more questions as I know building small structures in remote locations can be daunting.
19 Replies
- Accountant · San Diego, CA · Member since 2019 · 1k+ posts · 552 votes2y
Hey @Laura Casner,
My Tiny piece of advice would be to understand the "Short term rental loophole" rules before buying anything. Dont want to miss out on potentially lifechanging tax savings! Best of luck in your journey!
- Real Estate Agent · Member since 2022 · 11 posts · 8 votes2y
I'm sorry that my response is not exactly what you're asking for, but I hope it can be helpful. Have you looked at the current existing inventory of tiny homes in the area? I would make sure it's not over saturated with tiny homes. They can be convenient to rent, but they don't appeal to everyone. I own property in Bryson City, North Carolina (south side of the smokies). Before we purchased I was looking for a place to stay during a busy time and the only places available were tiny homes (meaning everything else was booked but there were plenty of tiny homes that were not).
Other than that, make sure the zoning allows multiple residences to be built and STRs are allowed.
- 2yRobert EllisBusiness MemberDeveloper · Miami, FL · Member since 2014 · 3k+ posts · 1k+ votes
Quote from @Laura Casner:
I'm looking for 3-5 acres to do 3-5 tiny houses (built into foundations) in the greater Knoxville area for STRs. Any advice on what to look for in land??? Any recommendations outside of MLS to search for land? Anyone build these types of units before and have any advice?
there's a builder who did TN and is looking in Logan county in Columbus Ohio submarket does very well for short term rentals. it is hocking hills and new builds do very very well out there. one of the highest price per sq ft in our market I'd look at other markets too. cabins do very well.
Section 8 Launch52 Reviews - Realtor · Knoxville, TN · Member since 2022 · 28 posts · 16 votes2y
Morning Laura! Depending on how you went about it, your best options will likely be something like this: https://www.flexmls.com/share/9ne6i/Grindstaff-Rd-Rd-Hartfor...I dont think this location is lucrative enough to be a year-round draw and money maker, but is the closest to Knoxville while still maintaining a draw for guests (Pro: mountains, river rafting; Con: worth repeating-still pretty far out). I'm not a tiny home guru, so others chiming in will be better apt to give good info, but idea-wise, it's my thought that STR cabins or LTR closer to Knoxville will be better investment long term and hassle. "Interesting land" is hard to find around Knoxville/Sevier right now that is priced well-enough to build unless you are contractor/developer with bigger project.
- Rental Property Investor · Columbus, OH · Member since 2019 · 131 posts · 183 votes2y
Quote from @Laura Casner:
I'm looking for 3-5 acres to do 3-5 tiny houses (built into foundations) in the greater Knoxville area for STRs. Any advice on what to look for in land??? Any recommendations outside of MLS to search for land? Anyone build these types of units before and have any advice?
My wife and I are doing something similar in the Logan/Hocking Hills area mentioned by @Robert Ellis. We're starting with 2 tiny units on 17 acres. It's been a learning experience for sure.
If you're buying raw land, definitely research through your county what it'll take to get utilities established. For example, we're having to get easements in place with a neighbor to establish electric and you should include a soil inspections as part of your due diligence period to make sure you can place septics (check with the county to see if you can tie multiple units into a single septic or if they have restrictions around this; our county is relatively lax, but does require each unit to have it's own septic system; really overkill for tiny units that is going to add a decent amount to our bottom line). If you're able to access city utilities, probably much easier, but I wouldn't discourage you from pursuing something more out there. WiFi is also going to be an issue given how rural we are, so we're having to go with Starlink, which has its pros and cons.
Obviously finding land with "character" would be ideal, but that can also make building more difficult. That's a give and take. One thing I might suggest is considering going bigger than 3-5 acres for 3-5 tiny houses. It would depend on your market and I don't know yours, but STR guests in our area tend to value privacy/seclusion and so stacking units on top of one another isn't preferred. We hope to eventually place a total of 4 on our 17 acres and not go beyond that, so we can keep that sense of space around each unit for the guest experience.
Being relative novices for a project like this, it was also helpful having a couple trusted sources walk the land with us and give their opinions. It helped offer a little confidence that our plans were feasible before pulling the trigger.
- New to Real Estate · Knoxville, TN · Member since 2022 · 52 posts · 14 votes2y
There's so much good info here! I have been wondering about the land size and if it is enough and been thinking I need to be on the land to know if it feels big enough. Also an interesting perspective on the size - I had the impression that they were not as common as they are maybe. I wonder how much style matters - I am planning to do something aesthetically that is not common in the area but definitely need to do a deeper dive into potential competition. I have also thought about doing each of the 3 unites in varying sizes targeting a couple, a family of 4, and a solo traveler given I'm trying to provide a retreat vibe. Has anyone completed a build? What did you feel you did right, and what would you do differently?
- New to Real Estate · Knoxville, TN · Member since 2022 · 52 posts · 14 votes2y
@Carmen Veurink What's your definition of a tiny house in sq footage? I might be misusing the term. Do you think there is a sweet spot gap of any particular sq footage or br/ba count?
- Specialist · Charlotte NC · Member since 2017 · 109 posts · 48 votes2y
I have designed and built several ADU's for real estate investors in the south. While there are key differences between an ADU and a Tiny House, there is at least one commonality to keep in mind: on these smaller builds the price per sqft is going to be higher than normal.
Kitchens and Bathrooms are generally the most expensive part of a home to build, while Bedrooms and Hallways are the cheapest. ADU's and Tiny Houses still have a Kitchen and Bathroom (albeit a little smaller than normal perhaps), but they skip the additional Bedrooms. So if you're simply going on price per sqft, an ADU or Tiny House will be more expensive solely based on that metric. Not an issue as long as you are aware going in.
- Real Estate Agent · Member since 2022 · 11 posts · 8 votes2y
Quote from @Laura Casner:
@Carmen Veurink What's your definition of a tiny house in sq footage? I might be misusing the term. Do you think there is a sweet spot gap of any particular sq footage or br/ba count?
Personally, our family of four does a lot of traveling and staying in airbnbs. I think of the tiny home as studio or under 500 square feet. It would be fine if it were just us two adults - and they appeal to couples. But I personally don't like to stay in them with my kids if there aren't two separate sleeping areas.
- 2yBruce WoodruffPro MemberContractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
Quote from @Laura Casner:
I'm looking for 3-5 acres to do 3-5 tiny houses (built into foundations) in the greater Knoxville area for STRs. Any advice on what to look for in land??? Any recommendations outside of MLS to search for land? Anyone build these types of units before and have any advice?
There are sites like this that I use for just land:
https://www.landsearch.com/properties
Question - why so much land....1 acre per building? Seems a but much....
I've built a 'smaller' home (500sf) off the grid and it was a real adventure. The main issues you may have will be with the building/zoning/planning departments, depending on where you decide to build.....
Keep the questions coming...
- 2yRobert EllisBusiness MemberDeveloper · Miami, FL · Member since 2014 · 3k+ posts · 1k+ votes
Quote from @Bruce Woodruff:
Quote from @Laura Casner:
I'm looking for 3-5 acres to do 3-5 tiny houses (built into foundations) in the greater Knoxville area for STRs. Any advice on what to look for in land??? Any recommendations outside of MLS to search for land? Anyone build these types of units before and have any advice?
There are sites like this that I use for just land:
https://www.landsearch.com/properties
Question - why so much land....1 acre per building? Seems a but much....
I've built a 'smaller' home (500sf) off the grid and it was a real adventure. The main issues you may have will be with the building/zoning/planning departments, depending on where you decide to build.....
Keep the questions coming...
you need space and rural land you want lots of room. people don't go that far to sit on top of each other
Section 8 Launch52 Reviews - New to Real Estate · Knoxville, TN · Member since 2022 · 52 posts · 14 votes2y
Quote from @Robert Ellis:
Quote from @Bruce Woodruff:
Quote from @Laura Casner:
I'm looking for 3-5 acres to do 3-5 tiny houses (built into foundations) in the greater Knoxville area for STRs. Any advice on what to look for in land??? Any recommendations outside of MLS to search for land? Anyone build these types of units before and have any advice?
There are sites like this that I use for just land:
https://www.landsearch.com/properties
Question - why so much land....1 acre per building? Seems a but much....
I've built a 'smaller' home (500sf) off the grid and it was a real adventure. The main issues you may have will be with the building/zoning/planning departments, depending on where you decide to build.....
Keep the questions coming...
you need space and rural land you want lots of room. people don't go that far to sit on top of each other
Yup, like Rober Ellis said - I'm selling solitude and privacy. I spoke with a lender today who said their bank wasn't taking on any more commercial loans for STRs unless you had really deep pockets. What types of construction loans have y'all seen for this? Any particular type of bank more likely to lend?
- New to Real Estate · Knoxville, TN · Member since 2022 · 52 posts · 14 votes2y
Quote from @Bruce Woodruff:
Quote from @Laura Casner:
I'm looking for 3-5 acres to do 3-5 tiny houses (built into foundations) in the greater Knoxville area for STRs. Any advice on what to look for in land??? Any recommendations outside of MLS to search for land? Anyone build these types of units before and have any advice?
There are sites like this that I use for just land:
https://www.landsearch.com/properties
Question - why so much land....1 acre per building? Seems a but much....
I've built a 'smaller' home (500sf) off the grid and it was a real adventure. The main issues you may have will be with the building/zoning/planning departments, depending on where you decide to build.....
Keep the questions coming...
Thanks for the site link. I'm going to see what I can find there. I already like the fact that it has applicable filters!
- New to Real Estate · Knoxville, TN · Member since 2022 · 52 posts · 14 votes2y
Quote from @Carmen Veurink:
Quote from @Laura Casner:
@Carmen Veurink What's your definition of a tiny house in sq footage? I might be misusing the term. Do you think there is a sweet spot gap of any particular sq footage or br/ba count?
Personally, our family of four does a lot of traveling and staying in airbnbs. I think of the tiny home as studio or under 500 square feet. It would be fine if it were just us two adults - and they appeal to couples. But I personally don't like to stay in them with my kids if there aren't two separate sleeping areas.
Good to know, thanks! I feel the same, with small children who are used to being in their own room. I was thinking of one unit catered to families with two sleeping areas and a creative use of space.
- New to Real Estate · Knoxville, TN · Member since 2022 · 52 posts · 14 votes2y
Quote from @Daniel Judge:
Quote from @Laura Casner:
I'm looking for 3-5 acres to do 3-5 tiny houses (built into foundations) in the greater Knoxville area for STRs. Any advice on what to look for in land??? Any recommendations outside of MLS to search for land? Anyone build these types of units before and have any advice?
My wife and I are doing something similar in the Logan/Hocking Hills area mentioned by @Robert Ellis. We're starting with 2 tiny units on 17 acres. It's been a learning experience for sure.
If you're buying raw land, definitely research through your county what it'll take to get utilities established. For example, we're having to get easements in place with a neighbor to establish electric and you should include a soil inspections as part of your due diligence period to make sure you can place septics (check with the county to see if you can tie multiple units into a single septic or if they have restrictions around this; our county is relatively lax, but does require each unit to have it's own septic system; really overkill for tiny units that is going to add a decent amount to our bottom line). If you're able to access city utilities, probably much easier, but I wouldn't discourage you from pursuing something more out there. WiFi is also going to be an issue given how rural we are, so we're having to go with Starlink, which has its pros and cons.
Obviously finding land with "character" would be ideal, but that can also make building more difficult. That's a give and take. One thing I might suggest is considering going bigger than 3-5 acres for 3-5 tiny houses. It would depend on your market and I don't know yours, but STR guests in our area tend to value privacy/seclusion and so stacking units on top of one another isn't preferred. We hope to eventually place a total of 4 on our 17 acres and not go beyond that, so we can keep that sense of space around each unit for the guest experience.
Being relative novices for a project like this, it was also helpful having a couple trusted sources walk the land with us and give their opinions. It helped offer a little confidence that our plans were feasible before pulling the trigger.
@Daniel Judge What is your land like? It's heavily wooded where I am so I was thinking an acre between would work at min. I am leaning towards 5 acres for 3 homes though. Did you borrow money for your build, and if so, what type of load did you get for multiple units on the same land? My commercial loan conversations aren't going great.
- Rental Property Investor · Columbus, OH · Member since 2019 · 131 posts · 183 votes2y
Quote from @Laura Casner:
Quote from @Daniel Judge:
Quote from @Laura Casner:
I'm looking for 3-5 acres to do 3-5 tiny houses (built into foundations) in the greater Knoxville area for STRs. Any advice on what to look for in land??? Any recommendations outside of MLS to search for land? Anyone build these types of units before and have any advice?
My wife and I are doing something similar in the Logan/Hocking Hills area mentioned by @Robert Ellis. We're starting with 2 tiny units on 17 acres. It's been a learning experience for sure.
If you're buying raw land, definitely research through your county what it'll take to get utilities established. For example, we're having to get easements in place with a neighbor to establish electric and you should include a soil inspections as part of your due diligence period to make sure you can place septics (check with the county to see if you can tie multiple units into a single septic or if they have restrictions around this; our county is relatively lax, but does require each unit to have it's own septic system; really overkill for tiny units that is going to add a decent amount to our bottom line). If you're able to access city utilities, probably much easier, but I wouldn't discourage you from pursuing something more out there. WiFi is also going to be an issue given how rural we are, so we're having to go with Starlink, which has its pros and cons.
Obviously finding land with "character" would be ideal, but that can also make building more difficult. That's a give and take. One thing I might suggest is considering going bigger than 3-5 acres for 3-5 tiny houses. It would depend on your market and I don't know yours, but STR guests in our area tend to value privacy/seclusion and so stacking units on top of one another isn't preferred. We hope to eventually place a total of 4 on our 17 acres and not go beyond that, so we can keep that sense of space around each unit for the guest experience.
Being relative novices for a project like this, it was also helpful having a couple trusted sources walk the land with us and give their opinions. It helped offer a little confidence that our plans were feasible before pulling the trigger.
@Daniel Judge What is your land like? It's heavily wooded where I am so I was thinking an acre between would work at min. I am leaning towards 5 acres for 3 homes though. Did you borrow money for your build, and if so, what type of load did you get for multiple units on the same land? My commercial loan conversations aren't going great.
We're in the Hocking Hills area of OH, so the challenge tends to be finding land where you can get a driveway into it and the interior isn't too steep. We lucked into some wooded hunting land that already had the driveway and was relatively flat on the front end with a ravine and small creek cutting through the middle of it, leaving two sides and a somewhat scenic area in the middle. Debating creating a pond in the middle portion. It gets hilly towards the back and theres a bluff overlooking the ravine that we will probably use in the future to place another unit someday, but currently, we're just setting two units up on smaller bluffs looking down on the ravine. The entire parcel is a large rectangle and surrounded on two sides by other hunting grounds while the third side is owned by someone with 7 or 8 tiny-ish STRs on it.
We found a great local credit union with pretty agreeable terms. Not sure if they lend out of state, but happy to send their info if interested. Rural 1st is a national outfit with a good reputation and they might be able to assist with the land purchase.
- Real Estate Agent · VA · Member since 2008 · 420 posts · 175 votes2y
I sell land with this types of zoning all the time Laura and have actually looked into a bit. The most important thing is to contact planning and zoning. I think your acreage range is very doable since it'll fall within the non restrictions category for the most part. I have a land in WV that I was looking to do something like this and they only allowed manufactured homes due to the HOA covenants.
There are two issues with dealing with land in TN
#1 is the soil, will it perk for septic. This could be resolved by getting a perk test / soil test.
#2 is the slope. Parts of TN are very mountainous and it could make putting a tiny home a bit challenging def doable though. I use Land.ID to look at slope and have someone walk it to get a clearer picture for this.
I saw the listing link provided by the user above and this is a great fit for a tiny home, however, some folks aren't used to driving on gravel/dirt road so something to think about.
All in all, this is a great idea and something to dig into for sure!
Do let me know if we could connect, I already have a HUGE database of land sellers all around the nation maybe we could connect and put a marketing plan together to go after exactly what your looking for.
- 2yAndy EdgemonPro MemberMember since 2023 · 28 posts · 18 votes
Great land question. Have you considered tax delinquent properties? You should be able to go to the county website and find the tax department to get the information. Then ask for a list of tax delinquent properties. Some state require you to fill out a freedom of information act document that takes less that a minute to fill out. Then they send you a list of people who are late on taxes. Then you can mail them and ask if they are interested in SELLING the property. I wouldn't suggest taking on the tax lien, because there are a lot of restrictions and laws about it how long it will actually take before the land is yours. It takes some time to go through the list but you can find a diamond in the ruff for sure and it's not listed on MLS.
Then do your due diligence to check zoning, easements, other liens that maybe on the property, utilities etc.Another thing to think about. I think it was mentioned earlier but if that area is rocky you need to account more in your budget for utilities. Hammering out rock or blasting for foundations, and utilities can get pricey real quick.
- Contractor · Atlanta, GA · Member since 2016 · 49 posts · 26 votes2y
Hey @Laura Casner I am in the process of building an 800 sq ft A frame from DEN Outdoors on 1.8 acres near Ellijay. Some really great points have been brought up already and one I would emphasize is site utilities. On these sloping lots you need to be hyper aware of where you can place your septic tank and drain field. For example in the county I am building in you need to have your drain field at least 100' away from your well and there is a maximum amount of slope the drain field can sit on. It also has a distance it has to be from flowing waters like a creek. Additionally keep in mind a well drilling truck is about as heavy as a fully loaded concrete truck and as long as a school bus so access for your well location will drive your feasibility as well. As previously mentioned here getting power to the site can be tricky. You can pretty easily see where the closest power is whether it's a power line or under ground utilities with a transformer. Keep in mind power will only run so far without adding an additional transformer due to voltage drop. This would really only apply if you were building on a 10-20 acre site and your properties were pretty far from the main lines. Happy to answer any more questions as I know building small structures in remote locations can be daunting.
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