Should I build a tiny cabin as a STR?
I've got a pretty unique and fortunate opportunity that I'm thinking about and I'd love some insights.
My parents own a vacation cabin near Leavenworth, WA, with about 500 feet of usable riverfront. It's about 3 hours from where I live. They'll probably build another cabin on a lot they just bought next door. Probably a few years out. So in the meantime, I'm thinking of building/buying a tiny cabin that I can plop down by the riverbank and AirBNB it. I'd have free land use and could move it to another side of the property if they built and kicked me out. I reckon $75 a night is very conservative. The private waterfront, proximity to a tourist Bavarian village, 15 mins to 2 lakes and a golf course, and 35 mins to a ski resort makes it a pretty prime location. I figure summer and winter it could go for $100+/night, but I won't count on it. Plus, I'd love to just go out and use it when I have time.
Even at $75 that's only 266 nights to get paid back in full. I think that's pretty doable over the course of a few years. More optimistically, I could potentially keep it booked all winter and summer at $100, so let's assume 150 days right there. Not a bad ROI eh?
Here are the potential pitfalls and solutions I'm pondering so far. Please fire away with more potential problems with this plan!
- Going into business with family. - already have done successfully in the past. get it in writing.
- Getting kicked out - find a new lot to rent on or sell the thing
- Management/cleaning - find a local host to do it
- Changes to local laws are subject to change on me
Any thoughts are appreciated!