Cabins for contract mechanics?

Cabins for contract mechanics?

Member since 2022 · 4 posts · 2 votes

I have 3.5 acres of wooded land In a beautiful area in Central Georgia. 10 minutes from a high-school that just doubled in size, 25-30 minutes from 2 airports where lots of contractors go to work on aircraft.

It's a beautiful twisty curvy drive out to this very wooded lot. City water, power, needs septic tanks. Undeveloped except for a rough driveway.

I'm planning to build three 500sf furnished cabins and rent them out to contractors in the same way as renting to travel nurses. Not sure what the going rate is, but I was thinking about 250/week.

The land has been under contract for 42k, but the buyer backed out. I think the cabin could be a great investment, but I need funding.

I'm think a construction loan using the land value as collateral might work for the down payment? I'm thinking I could do everything for under 100k.

I have a list of companies to do the various needed improvements. I spoke with planning and zoning, they said to bring them a detailed proposal.

My question is:

What is the best way to get funding and get started with as little out of pocket as possible?

Thank you all in advance

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  • John UnderwoodPro Member
    Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
    3y

    Start talking to banks that do construction loans to identify you best lender. Not all banks will do this type of loan.

    They can run a preapproval to see if you can get the money you need. The land should be able to be counted as the downpayment.

    I like checking with local banks that I already have a relationship with.

  • Michael BaumPro Member
    Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
    3y

    @John Underwood is right on @Cody Simmons.

    One thing, will these cabins be stick built on foundations? I don't believe that you can use a construction loan for cabins that aren't permanent on the property. I have also heard that some loans have a per sqft minimum.

    You might have to go with some kind of commercial construction loan.

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