Own land, seeking financing to build STR

[Ryan Thoma]

Hi, per the title, I have 5 acres of land in VT outright under an LLC. I am looking to build a SFR for short-term rental, would be my first-time new build.

I have engineer plans for well and wastewater stamped by the state of VT for up to 4 bedrooms. I'm now courting builders for plans and estimates, narrowing down to few I've shortlisted. Which leads to the funding...

I've used hard money for flips but this is too rural for their underwriting guidelines. I'm also having fits with traditional banks because the loan would be considered commercial. My financial advisor is boutique and is connecting me to private lenders which sounds promising but who knows their appetite. I can muster my own capital + leverage but it would not be quite enough I think (and my wife might kill me).

My instinct is to raise capital hell-or-high-water and refi later upon completion with a DSCR. Is there an option or strategy I'm missing for the first leg of this? Any input appreciated - thank you.