Looking to buy my first STR property. Looking for financing input

[Alison Saccoccio]

Hi all,

I am here looking for help to figure out the best strategy to own a STR property.

I am very new to investing and in fact haven’t actually invested in anything but the home I currently live in.

I am looking to buy a piece of property a couple hours away from where I currently live. At the moment I have about $30,000 that I could comfortably invest into something. My initial idea was just to buy a piece of land and get that paid off and then take out a loan to build a small house on. However, if I take out a construction loan later down the road, say 5 years, I probably am not going to have more than $10,000 to put on that loan so I'm not sure if this is the best route. I wanted to build because the area I'm looking is pretty competitive with STR's and it has to be something unique and attractive and I feel this will be easier to accomplish building new. Plus it's an area we frequently visit and pay someone else to stay on their property so we would like to get some personal use out of it as well.

I’m just looking for some general advice from people who have experience and who could direct me to the right people to speak to.

[Nicholas L.]

@Alison Saccoccio

hello and welcome.  not to be discouraging, but if you don't already have experience, i think trying to build for your very first property is going to be exceptionally difficult.  30K just is not a lot to work with.  do you have a background in, or access to expertise in, permitting and construction?  you can browse the forums and view other threads, i found these for example:

Newbie New Build for STR Questions

build from scratch STR in my home vacation market?

and even just to buy something that's already built ... just to be blunt... 30K just isn't that much to work with, if you think about needing a down payment, closing costs, and then the costs to furnish, set up, and list.  both LTRs and STRs tend to be more expensive to get up and running than new investors think.