All Forum Posts by: Eric Gabbard

 Interested in doing this as a house hack in the near future. Have you found anyone in Austin that knows more about this strategy? Would love to know what manufacturer is building for $50k

Thanks so much for all the info and advice!! I'd love to know more about your new construction project in Three Rivers - most of the lots I am looking at are in that area. Did you sell the property or are you renting it out short or long-term?

I am planning on hiring a builder so if your son-in-law has a website or anything I can look at to see what he's worked on please pass it along and I'll see if it's worth setting up a call.

We've found an agent already but if it doesn't work out, I'll reach out to your niece!

 Ah sorry - 5% down payment, 30 years. Conventional mortgage. Idk the rate yet but I'm assuming it's in the 7-8% range.

I found lenders that do a 5% one-time close new construction loan. I am still learning about it and going through the process so I don't know yet if I would recommend it, but from what I know it covers most or all of the pre-construction costs as well.

Yes, I have talked with a few local agents and found one group that I like a lot and will be working with.

Great advice. Luckily, those things don't have to be mutually exclusive. I like the area personally and also recognize it as a great place for an investment. After the period of time we live in the property so that we can consider it a primary residence, we would convert to STR and likely not use it for personal vacations at all.

@Daniel Netzer most of the lots available are in the south bend area so I’ve been looking around Deschutes River Woods and as far south as Three Rivers and La Pine. Comps in the area for high quality listing are in the range of my post estimates. Tourism is growing, % of those visitors choosing STRs over hotels is increasing, and supply of rentals will start going down in the city because of the restrictions.

I’ve been wanting to live in the PNW for a while and have been looking for a way to invest in the area!

I am interested in building a small home in southern Bend, OR (outside of the city limits where the STR restrictions are) or in La Pine with the end goal of turning it into a short-term rental. I am interested in hearing from anyone with experience in this type of thing!

I would like to purchase land in the area and have a roughly 800-1200 sqft 2/1 home built that could fit 4-6 people. The home would be built with STR in mind so it would include many amenities, unique architecture, large windows with a great view, and finishes that stand out on listing platforms. To finance this with a low down payment, my wife and I would live in the house for a year after construction is complete so that it can be considered a primary residence before it is listed.

My estimates on numbers...

Initial Purchase

Land purchase - $150,000

Home construction - $250,000

Down Payment (with 5% one-time close construction loan) - $20,000

Closing - $8,000

Monthly Expenses

PITI (including PMI) - $3,400

Utilities/Supplies/Maintenance - $700

*calling cleaning a wash because I charge for it

Monthly Rev

Occ - 70%

ADR - $250

Totals

Annual pre-tax profit - $15,000

CoC - Around 30%

Would love to hear thoughts on potential risks or any recommendations on people to work with!

That's a fair point about the fire - Is your concern more about the hassle for the guest or their safety? Knowing that each property will be different, the idea behind the wood burning was that it would not require power hookups.

Thanks for the response!

Looking for advice and feedback on a business idea for short-term rental operators and guests.

To help differentiate your property, having a wide range of amenities is obviously important, but sometimes it's hard to justify the cost of those larger items. The idea is to rent amenities as add-ons for guests to book alongside their booking of your property. The first one I would build is a wood-fired sauna on wheels that could be dropped off at the beginning of the stay and then picked up at check out. Other amenities could include a hot tub, a large grill/smoker, a cold plunge, etc. (all built on a trailer frame so that we could deliver and pick up).

The guest would receive a message after booking with a link to my website to see options and availability and would book directly from me. All delivery, cleaning, and payment would be handled by my company so it would be no additional work for the host.

I have one STR property in GA and have gotten good feedback on the idea from my last few guests, but wanted to see if other hosts would find the service valuable enough to offer to their own guests.

Any feedback, positive or negative, would be super helpful.

Appreciate you both! 

@Conner Olsen can you link your YouTube channel so I can check out the video?