“Homestead” Small Development in CenTX

[Joseph Alanis]

I’m a first-timer looking at 1–2 acre lots in the Boerne / Spring Branch / Bulverde area. My thought is to buy land, place a prefab cabin or tiny home on a slab, add well/septic, tie into the grid, and market them as turnkey “homesteads” (due to options like  (small diy) basic solar, chicken coop/fencing, garden beds, etc.).   Texas hill country region is growing fastest in state, There’s a big homeschooling/homesteader/self sufficient demographic here that seems to fit.

My questions for those with experience:

• 1) Does this sound like a feasible model in this market?
• 2) What do you see as my biggest hurdles (financing, appraisals, permitting, resale comps, etc.)?
• 3) If everything is financed, what routes would you recommend to structure this best?
• 4) Will appraisal values likely lag behind my asking prices, and how do I overcome that?
• 5) If 1 acre runs around $100K here, what ballpark numbers would you expect in terms of total investment vs. resale price for healthy returns?

Any and all advice from those with experience in similar projects would be greatly appreciated. Thanks!

[Benjamin Louie]

@Joseph Alanis 

Hey Joseph, this sounds like a really interesting niche in the Texas Hill Country! Prefab cabins or tiny homes on small lots can definitely appeal to homesteaders and self-sufficient buyers, especially if you include basic solar, garden beds, and fencing.

Biggest hurdles I’d watch for are financing (banks can be picky with tiny homes), permitting, and appraisal values; sometimes comps lag behind your asking price. Structuring it as a turnkey package with clear utility hookups and appealing amenities will help justify your price. Also, working with local lenders familiar with small-lot or tiny home projects can make financing smoother.