Which of these two options would you do?

[Bruce Woodruff]

One of our places is getting busy enough that it has me thinking that opening another (on the same property) would be smart.

Option #1 - Build a smaller-size cabin, less than 400 SF. [I would build it all myself except for septic]. Do not get a loan, but rather use proceeds from existing STRs to finance this. High-end finishes. I'm saying $40k for this.

Option #2 - Buy a premade shed and finish it off very high-end. Use their financing. (See pic)  Price $30-40k

Staying under 400 SF because that is where the cutoff for permits is. Meaning a lot less fuss to build something smaller. Thoughts?

[Kristopher Blais]

What is the timing and rent for both options? 

That differential in time spent prepping to rent, multiplied by daily rate achievable is another factor to consider. E.g. - if the premade one is up and running a month faster, that's how much more in revenue? That additional revenue "reduces" initial expense.

Apples to Apples, I'd go option 1 any day. But there can be value in going the more direct route. 

Please let us know what you end up doing!