First shot at Air BNB in the Yosemite Corridor...

[Jason Gray]

Hey gang, I've been radio silent on the forums for years. I sat out the boom bust since 2008 and focused on returning to full health after a spine injury.

Now I've got a property under contract:

$78K purchase
$35K in development of utilities.
$24K in soft costs (permits impact fees etc)
$200K (or less) buildout of the house (size tbd on after-build-appraisal) Likely going with 2/2 A frame 1000 sf.

Comps solid $410K - $555K (newest) in the area (comps are 1400sf to 1700 sf) and several along this creek sold for above asking price recently.

I'm wondering if I should build out the house to sold comps valuation (bigger more expensive house chasing equity valuation)

OR

Should I build just enough of a nice mountain cottage for best cashflow. Smaller house cost, lower loan costs.

The property has an amazing creek canyon (attached photo) is 5 miles from all the major attractions to Yosemite, and 7 miles from a lake.

Whats the going consensus?  This property has some one-of-a-kind qualities namely a nice creek with inbound and outbound waterfalls at each end of the property (its on a hill w creek canyon).

I've gotten the septic scoped and certified, well is good, power needs to be reinstalled as property was abandoned years ago.

Intent is to get the foundation blessed off by a Civil Engineer and save about $15K in foundation costs as the original design was for a 3400 sf house. I've been to County already and discussed this in detail. They can bless off on it after a civil engineer signs off.

Sorry for the long winded back story, but end game is to put a A frame on the existing 20x40' stem wall above near where I"m standing, and put some stairs into a drop down area below for chairs/fire-pit overlooking the river canyon below (but out of view) under where the drone is flying.

Pad plan. Creek directly below drone.


creek view, directly behind is 30' waterfall.

[Michael Baum]

Hey @Jason Gray, so that foundation is on the cusp. I hope it passes inspection but it is going to be close from what I can see. Maybe some easy refreshing of the mortar but I would also plan on digging down for better waterproofing.

Now, no way I would build a tiny little place on that lot. You have a bunch going for it, especially the creek.

I would build the big house and do a cool deck out towards the creek. That would make is more special and a no brainer IMHO.

Use the foundation and if you can make it 2500sqft or so that would be my goal. Even the 3400 would be pretty amazing if you could swing it.

The bottom line is what a place like that would bring. You would be double or tripling the build cost. Are there any places that big in the area for rent? What are they bringing in and the amenities?

If you can't double your nightly with the bigger place, then the smaller place makes sense.

It would be hard for me to pass up building a bigger place to take advantage of that creek view.