STR build to rent

[Devin McIntosh]

Has anyone taken on a build to STR project? If so how did you finance it?

I would like to build multiple units on one tract of land (in county, no deed restrictions) but not sure how to approach it from the financing side. I could buy land and build 1st unit as a model cash, but I would rather keep my powder dry. Does anyone have experience with this strategy that they can share?

[Devin McIntosh]

Quote from @Michael Baum:

With a commercial loan, business plan and projections, this could be possible.

If you bought the land for cash then did what @Andrew Steffens said I think you could do some kind of business loan or maybe and SBA loan.

You could sell it as more of a resort or STR community vs single STRs.

What I would be concerned about is the single tax lot with multiple homes. Can you subdivide the lot to accommodate separation of the homes?

By keeping them all on one lot, you would have to sell the place as a single property IE: as a resort. Different market and usually a much longer time to sell. That would be for both you and the lender if they needed to foreclose and sell.

 That is a very good point, I was thinking it would make a lot more sense to subdivide so that they could be sold individually.