What I did find is that as a builder in eastern tennessee, I could build STR cabins for less than 70% LTV so that I could effectively BRRR my way into growth without coming out of pocket for a down payment.Now it does take a lot more cash to do because as a builder I have to front a lot of money at times (land, permits, each stage of construction while I'm waiting on the draw). 

Your insurance is going to be highly variable and I wouldn't use what an agent or the seller tells you as the cost of dwelling policies have increased substantially over the past few years due to rising new construction costs. 

@Chirag Mehta For construction costs, you should be around +/- $100 PSF which would include all sitework, utilities, and going vertical with modern finishes.  

Note: Our initial goals are to wholesale to build immediate working capital (targeting $150k) and hold for cash-flow to build 10k/mo FCF (free cash-flow).We have made some cash buyer connections, identified and underwritten potential deals on hundreds of current deals, and developed professional relationships in our target community (cleaning, construction, governmental). 

My name is Jewett Richardson, and I’m a recent college graduate with a degree in Construction Management.

I know what exactly it takes to obtain a post-construction permit to bring any un permitted structure into compliance.

Hi Silas.Do you plan to have a GC or handyman run the construction project?

They are vertically integrated management and have their own construction warehouse and contractors.

Hey Errol, Im open to getting on the phone with you to give you some perspective of this type of construction and what you should expect if you decide to move forward.

As a realtor specializing in pre-construction, commercial, and investment properties, I’d be happy to answer any questions or help guide you through the process if you’re interested.