Buying A Home, Building a Shipping Container Airbnb

[Michael Maloney]

I am looking to creatively house hack, but my area (Westfield, IN) does not have very many duplexes. So this is my thought: buy a home on a lot large enough to build a “guest home.” I would like to build a shipping container guest home, and Airbnb the guest home to cover my mortgage and credit line (used to build guest home). However, the property that I am looking at buying is not in a neighborhood, but it is still zoned as “No Subdivision.”

How can I get around this to still be able to build and rent out the shipping container home?

Also, I work in construction, so I have a good handle on building structures, but need a book that discusses zoning laws and making sure that if I purchase the property I’ll be able to build on it. Also if anyone has shipping container book recommendations I’d love to hear them.

Thank you!!!

P.S. I have done research on the area, and I know I’d be able to cover mortgage with the short term rental income (this is a 5 min drive from the Midwest’s largest sports park)

[Joseph Cacciapaglia]

I'm working on a couple of shipping container home projects now, and both will be for short term rental. Figuring out if you can build a shipping container home on a given lot, especially as a guest house, can be tricky in many locations. I would check with your municipality directly, and also consult an architect and real estate attorney during your due diligence process. 

There are several layers of rules that could be a problem. First you have to check that the zoning allows both a second home and a small structure. Some jurisdictions limit the minimum size a structure and/or a room can be. This caused me some issues. The city was my main source for this info, but I know in other areas you would need a real estate attorney to help navigate this, if the city isn't as helpful as San Antonio is.

Second, you have to check the local building codes. I've found that the code itself makes building shipping container homes difficult in some areas. You may already have a handle on this.

Third, you have to be sure there are no deed restrictions or covenants that prevent it. I ran into this in one deal. There are often restrictions in prior deeds that require certain materials to be used on the facade or that require the structure be a certain minimum size. You won't find out about these until you run a title search. I would not count on the title company to advise you on this either. Ask for the source documents, and either review them yourself or hire an attorney to do so.

Both the zoning and restrictions may also dictate minimum setbacks. These can make it impractical to build a second structure, even if one is allowed. These should show up on your survey. In my area we have a standard place in our contract to deal with contingencies for all of these issues, but that's not the case everywhere I've worked. You'll want to be sure you have outs in your contract for any of these issues that may arise during due diligence.