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Abhinay Dutta
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Developing Tiny homes resort

Abhinay Dutta
Posted Jan 11 2023, 19:02

Hello Fellow investors, 

I am planning to develop 3 tiny homes on a 10 acre property. Property is next to a lake and views are great, so I believe there's potential. Property is raw land. Water and Electric are on the road and It need a septic system. I am looking advice from investors who has done this kinda of projects before. Any tips/tricks on how to execute this? What should I except in terms of cash flow? How to operate such park? Any help will be highly appreciated. 

thanks,

-abhi

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Adam Bartling
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  • Lender
  • Rosenberg, TX
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Adam Bartling
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  • Lender
  • Rosenberg, TX
Replied Jan 11 2023, 19:15

@Abhinay Dutta Can you go 6 months no profit?  How are you going to market? What are your #s before you move forward?  Have you spoken to the county about permitting? Are you managing the park?  How do you sustain a onsite manager?  From your initial quotes to project begin, are there any price increases?  Who is supplying the tiny homes?  Can you source all your building materials locally?  

 How is that to start your planning?

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Abhinay Dutta
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Abhinay Dutta
Replied Jan 11 2023, 20:08
Quote from @Adam Bartling:

@Abhinay Dutta Can you go 6 months no profit?  How are you going to market? What are your #s before you move forward?  Have you spoken to the county about permitting? Are you managing the park?  How do you sustain a onsite manager?  From your initial quotes to project begin, are there any price increases?  Who is supplying the tiny homes?  Can you source all your building materials locally?  

 How is that to start your planning?

Thanks @Adam Bartling for your response. I've tried to answer your questions in the same order. 
Yes, I can go 6 months without profits.
AirBnb, Vrbo, booking.com and we'll setup direct bookings site(with discounted rates).
Sorry, what do you mean by #s?
The property is outside Waco, ETJ and has no restrictions. County only asked plans for septic system. 
I need to find someone to manage the park. Not sure how other park owners do that. Do I need to hire someone full time? I'd like to avoid that extra cost.
I don't believe I need full time manager to manage 3 STR units.
Tiny homes will be supplied locally from Waco area, However I need to prep the site. Lay down concrete slabs, electric, plumbing and septic. I am looking for a good construction company or GC for this. 

I can also consider partnering up with someone who has experience with these kinda projects. 

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Patrick Pendley
  • Investor
  • Waco, TX
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Patrick Pendley
  • Investor
  • Waco, TX
Replied Jan 12 2023, 08:34

Donnie Hall is the property manger I recommend to manage Air B&B properties, since we don't. 

  • Property Manager Texas (#559124)

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Chris Allen
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  • Temple, TX
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Chris Allen
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  • Temple, TX
Replied Jan 12 2023, 09:51
Quote from @Abhinay Dutta:

Hello Fellow investors, 

I am planning to develop 3 tiny homes on a 10 acre property. Property is next to a lake and views are great, so I believe there's potential. Property is raw land. Water and Electric are on the road and It need a septic system. I am looking advice from investors who has done this kinda of projects before. Any tips/tricks on how to execute this? What should I except in terms of cash flow? How to operate such park? Any help will be highly appreciated. 

thanks,

-abhi


 What size homes do you plan to place out there? Any amenities (community area, hot tubs, fire pits, decks, etc...?) I would also consider planning to have your septic built out to support more than just 3 properties if able. 10 acre is a lot of property for 3 tiny homes? You could eventually build more or even just put some pads for some RV spots or something?

I would get on AirDNA to see what income in the area for the size and guest count you plan to place. That will give you a rough idea for each individual home. Then compare that to your acquisition and build cost to see what your return might be. 

Have you considered just placing pre-fabricated tiny homes out there? Might be able to move faster than trying to build everything out?

I live in Temple and I also do STR's. If you are looking to someone to help host, I would love to talk to you about it.