Wanting to buy land+ build STRs near a NP on EC, anyone have exp?

Question

I'm looking to partner with a friend of mine and buy some land and then build PreFab's near a national park or outdoorsy area in either VA or PA (Think Poconos or Shenandoah NP). Our thoughts are are a city/town that's a close destination to the outdoors, but also not too far from some major cities.

Basically, the location isn't strictly determined yet. We'll look for land, maybe 3-5 acres and dig for water, route electricity, etc, and then build either a prefabricated home or an A-Frame perhaps. We're both in the very early stages of this and really looking for some insight/advice.

- Has anyone done something like this?

- How hard is it to build one STR, and then build a second or third STR a year or two later?

- What does zoning look like for something like this? Is it township/city specific?

-What are some other things I should be looking into/consider before purchasing land?

Not sure what else I need to add for more context, excited to continue this conversation!

Thanks!

-Gabe

Chase Hoover · Answer

You're not going to like this but I'll give you my honest take... Most jurisdictions will require a special use permit for this type of thing which can take several months. You'll have to write a contract on a piece of land contingent on this approval. The process invovles notifying neighbors who will be able to voice their opinions at your approval hearing. More often than not, unless you're buying a large and private piece of land, residents of these areas are the private and quiet type who don't want a bunch of rental cabins next door. Your best bet would be to find an existing campground that already has the approved zoning, but they're hard to come by. As is probably obvious by now, costs of supplies are through the roof, some are impossible to get, and contractor availablity/dependability is doo doo. Most prefab companies I've spoken with are 10-12 months out for delivery at the earliest. Not to be a negative nancy, that's just the reality of these times. My GC working on one of our projects is also working on a "glampground" like you described and has spent months battling the county for approval. Do you have the capital to carry a project 14-18 months before making a single dollar? Or is it better to pivot and start growing your portfilo by buying one existing cabin at a time and enjoy the cash flow now? I always try to steer my clients towards buying an existing structure instead of building.I'd also recommend chatting with a CPA if you haven't already to discuss the benefits of owning real estate, and whether doing something like this would truly allow you to maximize on these benefits. Regardless, I wish you the best! We're very active in the Shenandoah Valley VA market and it's a fantastic place to invest. Keep your eyes open and make a move when one presents itself!

Michael Porche · Answer

Pros and cons to both. You can control the cost from starting from scratch and build more units. if you build more unit you get more revenue

Michael Porche · Answer

Great question! and love what you are doing. I have some land I am building on now in Shenandoah! I also started doing this project in Idaho where we are looking to buy land to build for the same idea. It all depends on the availability of contractors and land use. The city/county has to be willing as well.

Don Spafford · Answer

Eastern Idaho has seen a lot of growth and new development. Close to Yellowstone/Teton Parks and lots of ski resorts for winter and lakes and forests for summer. Working with a few now buying existing or buying land to build. Happy to help if interested. Cities like Driggs, Victor, Island Park, Ashton, all depends on what you plan to do. I will say from your comment about building now and then more in a few years, nobody can say what changes may happen during that time. If regulation makes it so STR is not allowed, be sure to have a plan B where you can convert it to a long term rental or sell at an amount you will be good with.

Gabe Mcmullen · Answer

Exactly what Michael said. It's more about finding a location that we like and not having to work around previous constraints from other houses/units/city with the flexibility to add more units later on! When you say Time to Market, what do you mean? Like how long it would take us from purchasing the land to the first night renting?

Sastry Srini · Answer

I am curious to understand "buy existing vs build" STR approach. Any financial analysis done + time-to-market?