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Updated 6 months ago,
Looking to build A-frames for luxury STRs in Douglas County, WA
We are looking to find a land in Douglas County, WA mainly in Waterville town. The ultimate goal is to build couple of A-frames for luxury cabin in the woods STR. Our strategy is to buy land cash, take construction loan to build the structures.
Some napkin math for this strategy:
Land cost : $200,000
Building and furnishing Cost: $400,000 for each A-frame (Provided we have electricity, well ready )
Airdna revenue estimate shows $400 night rate with 70% occupancy. I am considering $300 night rate with 60% occupancy which translates to $65k revenue per year from each A-frame
After considering expenses $50k for each A-frame or $100k for 2 frames.
I have some questions about this strategy:
Did you try to get STR permit/construction permits in this area?
How difficult is it to work with the county?
What expenses am I overlooking in the calculation?