STR - Tiny Cabins, Creative Financing and Land Options

[Allison Skelcy]

Hi all!

I am in the midst of hashing out the last few legs of my business plan. In short, the business will consist of placing 3-5 nordic-styled tiny homes on some land (TBD) in Northern Michigan. When it comes to financing both the construction and land purchase (the tiny homes are manufactured in a Chicago warehouse, but will be permanently affixed to the land as a stick-built), what have your best experiences been to get that done? 

Looking at just shy of $450,000 for land purchase + home purchases + site work to get her up and running. 

And on a related note...does anyone have any GREAT RE agents they'd recommend in Northern Michigan, with a focus on vacant land/acreage? The few I've spoken with are just not going to get the job done.

[Bryan H.]

Hey there, 

This to me sounds grossly under-budgeted. I've built three successful unique airbnb small homes from scratch, and currently pricing vacant land and development costs for exactly what you've described (in rural NC or VA).

What have you allocated for land acquisition costs? Land development costs? Site work, septic, electrical? 

Just for starters, let's say you find suitable 5 acres for $150k. Lot clearing, basic road, site development, can easily reach and additional $150-200k. 

Curious about your numbers...