My father and I just paid cash for a little less than a 2 acre lot in Summersville, WV. We plan to build a cabin or cabins for our family use and an STR. The covenants state that the property can't be subdivided. We have about $100,000-$120,000 in cash to invest. My father is a contractor so we will be able to complete most of the work ourselves while keeping costs low and add equity. We would like to refinance as soon as possible after the build to recover all or most of our initial investment.

Annual STR revenue for 4bed 4bath cabin is estimated to be about $45,000. Annual revenue for a small 2bed 2bath cabin is basically the same. Build costs are basically double for the larger cabin.

Option 1. We use a construction loan to build a 4bed 4 bath cabin. Refinance after the build is complete to recover as much of our initial investment as possible. Pros: the cabin will be able to house our entire family, easy process to refinance. Cons:revenue basically breaks even.

Option 2: We pay cash to build a small 2/2 cabin initially. Keeping our overhead low and estimated revenue high. With hopes to build two additional cabins in the future. Once each cabin is built we would like to take a mortgage out to recover our cash and then use to build the next. Pros:income per cabin is estimated to be about $20,000/year. Cons:not as friendly for our family to use at the same time. May be harder to recover cash?

My question is this. How would we go about pulling our cash out of the deal if we went with option two? Would a bank even allow us to mortgage multiple buildings on a single lot without it being subdivided? Any advice is greatly appreciated!