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Innovative Strategies

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Erik Stuer
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RV Park/ Tiny Home Zoning Nube

Erik Stuer
Posted Jul 19 2024, 14:43

I'm interested in purchasing raw land (or close to raw) to scale up as cash flow permits. I have a half dozen years of experience renting out a few single family homes and am looking to bet big in a different market. I intend to sell one my single family homes (which I can avoid taxes on with the 2/5 primary residence clause) to obtain the needed capital. 

I am targeting raw (or unimproved land) to take advantage of sweat equity that I intend to put into it. I am not an expert in all of the needed work, but I have done enough of it to believe I can handle it without too much chaos. I envision offering the full gambit of stay options: short, medium, and long term rentals. The area I am targeting is a vacation destination that is rather seasonally resilient (working theory backed by decent to moderate research so far).

If I can get past the zoning hurdle specific to mainly "wastewater" - referring to the collection of the toilet, shower, and sinks discharge - I want to purchase 10+ acres that allow me to scale to something quite significant in time. I'd like to start small with 1-2 STR tiny house(s) or other less expensive "alternate housing" options (yurt, airstream, etc). This would be both a risk mitigation strategy as well as a bite size learning opportunity as I intent to manage close to all aspects of these for at least the short term (want to be an expert in the day-to-day operations before hiring this work out). I'd like to test out offering spots on the property to rent out on a daily basis that are entirely or close to off-grid or primitive. I am thinking anything from simple level camping pads for tent, van conversion, or RV use. My model projects these can be without private or individual site water, power, bathrooms, and/ or wifi and still be worthy investments.

I recognize this is far from the typical topic posted within BP circles and forgive me if I am barking up the wrong tree here. I understand there are many different hurdles with both zoning and logistics. What to do with the dirty water (whether that be because of food, shower water, or bodily discharge) is the one that worries me the most. I am thinking normal utilities being provided in a communal fashion similar to many pitch your tent campgrounds. Offering port-a-potties, well or cistern for water, and some amount of electrical power and wifi located strategically will be enough at first. My main goal is to identify an opportunity that can be scaled from a couple of spots to a dozen, to several dozen eventually without the need to completely re-design or re-engineer the layout without respect to providing utilities. 

Any thoughts or help is greatly appreciated and most welcome. Thank you!