Build an STR on an empty lot?

[Daniel Kiuttu]

Has anyone ever built on an empty lot specifically for a STR/vacation rental?

I picked up an empty riverfront lot last week - the deal was just too good to pass up. Based on comps and tourism traffic, I really think the location would perform best as a STR/AirBnB/VRBO once a building sits on the lot. That said, I don't hear many stories about folks building STRs from scratch.

Has anyone done it that can share how they assessed value/risks? From what I can see, the economics could really make some sense as long as I can get a construction loan similar to when you build a customer single family residence.

Thanks!