HI Andrew,
My partner is a contractor/developer in our VR biz. Typical margins on the houses he builds are about 30%, and even higher in resort areas we build. I serve as the property manager. When we buy land to build a VR, we focus on areas in or near the resort town with a proven renter following. After we buy the lot/land and finish building the VR it already is worth significantly more than our costs.
So, I would give quite a bit of consideration to: 1. The secluded area you mentioned-- can you secure renters to rent in that area and charge a premium?, and 2. Whether there is a way to partner with a contractor/developer so that you are not paying full retail to buy the home? Perhaps they could be the investor if you don't have enough $ after buying the land to put down 20-25%, plus furnish the home and pay taxes, mortgage payments, etc until first rents come in. Additionally, you may have some challenges attracting investors without a track record. You will need to be very tight with all the numbers, city ordinances, zoning, surveys, property mgmt plan, etc, etc.
Once you decide what town/area to buy land, I would look at the competition. If there are alot of small 2-3 bedroom homes already there, you may want to consider your options. Often, you get more bang for your buck by adding more rooms to the VR, due to the higher rents you can collect. Sometimes, the incremental costs of additional bedrooms are outweighed by the higher rents you can charge over time.
I could go on and on, but just wanted to throw some thoughts out there that may/may not be useful for you. Your idea is interesting in likely has merit if the demand is there, numbers work, etc. Good luck!
