The Ins/Outs On Building Vacation Rentals & Financing (Canada)

[James Bass]

Hello All,

A heads up, I'm new to BiggerPockets and have just begun my real estate journey (invested in 1 property as well as this current project with my dad and acquiring my real estate agent license). 

3 months ago, while visiting my dad, we decided on the idea to turn his house into a B&B and to build a variety of short term rentals on his property, located on the island of Newfoundland, Canada. We have just begun renovating the house to better suit guests and will begin building 5 stand alone huts once the winter is over. We will scatter them throughout the 8 acres of land he owns.

As both of us are new to this form of renting, we have no clue what to expect, or how we should maximize space to provide the essentials for guests in our huts. From those who have done this, what would you recommend we have within these huts so we do not overdo it (what have you learned from guests in the past and personal experience)? We are located in the recreational hub of the island with a lot of tourists throughout the year. Short term rentals and B&B's are in high demand. As well as with the B&B, what should we expect in terms of....everything? 

Our plan for 3/5 huts is to be roughly 13'x17', slanted rough, bed in loft and below loft (2 bed total). 2/5 huts to be roughly 500sqft, 2 bedrooms. The house has 4 bedrooms at 4800 sqft and we decided to turn 2 rooms into ensuits (what we are doing now). 

Also, I'm wondering if there are any 'best' ways to finance this project except from out of pocket cash? As well as all expenses I may have over looked, cash reserves for repairs, what policies to put in place, etc.

My apologies if I am being vague, as this is a first for me.

Many thanks,
James