Updated over 2 years ago on . Most recent reply
Bend, OR New Construction STR
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!