How does this deal sound??

[Josh Helms]

Hello we own/manage a few STRs in a heavy tourist area of East TN. We have always bought but I have been sitting on a good lot now for a few years and since prices are sky high at the moment I'm considering building on it. Curious as to your thoughts is this sounds like a good deal in the current climate.

Our plans are to build a 1,196 sqft cabin. The last time I spoke with a builder (year ago at least) he told me I should consider $275sqft to build. So that's a loan for $328,900. At the moment these places are appraising $400-$500sqft. I'll go in the middle and say $450. So thats an estimated value when the cabin is done at $538,200. I would refi right away and hopefully end with a mortgage around 200K. 

What I'm nervous about still are the crazy high interest rates. Does this deal sound good enough to just ride with the interest as it is now and wait until it drops to refi? We have never built before so I am curious as to any thoughts you have on this deal. Oh and we can use the value of the lot against the downpayment of the loan so we would be coming to the table with almost nothing