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Updated over 1 year ago, 08/01/2023

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12
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4
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Bill Denney
4
Votes |
12
Posts

How to build in equity?

Bill Denney
Posted

Just curious if anyone knows anything about building in value? The market is pretty dry for our budget in the area we prefer to invest in so we are considering building. We’ve had discussions with builders and have an idea of what kind of sq ftg we could afford in our budget. 

So we are entertaining the idea. I’d like to scale this business and use equity as a tool to do so (especially in the early stages of this).

My question is does anyone know how to build equity into str new construction? I know bedrooms and bathrooms are obviously a factor but what are the major considerations beyond that? Also, (from an equity standpoint) would it be better to build 2 smaller cabins (1-2 bedrooms each) - or one larger cabin (3-4 bedrooms)?   We have already determined the smaller cabins would cash flow much better in our area. We have not built before - so there is obviously some naivete there. 

Thanks again for any insight you may have. We haven’t settled on building - just exploring all options.  

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