Build to Rent - Short Term Rental ( Loghomes vs Modular vs Stick)

Build to Rent - Short Term Rental ( Loghomes vs Modular vs Stick)

Member since 2022 · 3 posts · 1 vote

Hello everyone,

I am exploring to build a vacation / short term rental home in west north carolina ( Beech/Sugar Mountain area). I would like to know thoughts from folks here on building the home. Would also like to know the thoughts on Modular vs stick-built in terms of appreciation/impact on rentals. Would also like to know thoughts on log home compared to traditional in mountains.

Appreciate thoughts and comments.

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Collin HaysBusiness Member
Property Manager · Gatlinburg, TN · Member since 2020 · 3k+ posts · 4k+ votes
4y

This is a great question. In the mountains, many folks want to stay in something that looks like a log cabin.  There are some really nice modular homes out there that look great.  And you can make a frame house appear like a log cabin easy enough by log siding on the exterior, and pine or cedar tongue-and-grove paneling on the interior.  

At least in the Gatlinburg area, most of the "log cabins" are fakes.  They have the siding and paneling inside.  But the truth us, most guests don't know the difference, nor do they care.  It still looks and feels like a cabin.

In 2017, I built a genuine log cabin in Gatlinburg.  I had yellow pine (very hard wood) logs shipped in from Canada.  They were rectangular, and you basically stacked them just like "Lincoln Logs".  But this is a very expensive and arduous process:  For a light switch, you've got to literally bore a hole down 5 or 6 feet of wood with a special bit, to run the wiring.  Similar for outlets.  And the wood moves and needs occasional adjusting with special tools.  The wood also needs routine staining and sealing, plus you have to protect it from critters like wood peckers and carpenter bees.

But...I wanted to the real thing.  I wanted a true log cabin that would be there long after I am going.  I was only going to get one shot at it, so I did it right.  A log cabin is going to be a multiple more expensive than any frame built house.  It's just a lot more cumbersome and complex.

Here is a link to my log cabin, on the bank of the Roaring Fork in Gatlinburg.  Take a look at the walls on the inside.  There is no paneling or sheetrock on the walls.  It's just the logs.

https://cabinsneargatlinburg.c...

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  • Collin HaysBusiness Member
    Property Manager · Gatlinburg, TN · Member since 2020 · 3k+ posts · 4k+ votes
    4y

    This is a great question. In the mountains, many folks want to stay in something that looks like a log cabin.  There are some really nice modular homes out there that look great.  And you can make a frame house appear like a log cabin easy enough by log siding on the exterior, and pine or cedar tongue-and-grove paneling on the interior.  

    At least in the Gatlinburg area, most of the "log cabins" are fakes.  They have the siding and paneling inside.  But the truth us, most guests don't know the difference, nor do they care.  It still looks and feels like a cabin.

    In 2017, I built a genuine log cabin in Gatlinburg.  I had yellow pine (very hard wood) logs shipped in from Canada.  They were rectangular, and you basically stacked them just like "Lincoln Logs".  But this is a very expensive and arduous process:  For a light switch, you've got to literally bore a hole down 5 or 6 feet of wood with a special bit, to run the wiring.  Similar for outlets.  And the wood moves and needs occasional adjusting with special tools.  The wood also needs routine staining and sealing, plus you have to protect it from critters like wood peckers and carpenter bees.

    But...I wanted to the real thing.  I wanted a true log cabin that would be there long after I am going.  I was only going to get one shot at it, so I did it right.  A log cabin is going to be a multiple more expensive than any frame built house.  It's just a lot more cumbersome and complex.

    Here is a link to my log cabin, on the bank of the Roaring Fork in Gatlinburg.  Take a look at the walls on the inside.  There is no paneling or sheetrock on the walls.  It's just the logs.

    https://cabinsneargatlinburg.c...

  • Member since 2022 · 3 posts · 1 vote
    4y
    Thanks Collin. Your log cabin looks great 



    Quote from @Collin Hays:

    This is a great question. In the mountains, many folks want to stay in something that looks like a log cabin.  There are some really nice modular homes out there that look great.  And you can make a frame house appear like a log cabin easy enough by log siding on the exterior, and pine or cedar tongue-and-grove paneling on the interior.  

    At least in the Gatlinburg area, most of the "log cabins" are fakes.  They have the siding and paneling inside.  But the truth us, most guests don't know the difference, nor do they care.  It still looks and feels like a cabin.

    In 2017, I built a genuine log cabin in Gatlinburg.  I had yellow pine (very hard wood) logs shipped in from Canada.  They were rectangular, and you basically stacked them just like "Lincoln Logs".  But this is a very expensive and arduous process:  For a light switch, you've got to literally bore a hole down 5 or 6 feet of wood with a special bit, to run the wiring.  Similar for outlets.  And the wood moves and needs occasional adjusting with special tools.  The wood also needs routine staining and sealing, plus you have to protect it from critters like wood peckers and carpenter bees.

    But...I wanted to the real thing.  I wanted a true log cabin that would be there long after I am going.  I was only going to get one shot at it, so I did it right.  A log cabin is going to be a multiple more expensive than any frame built house.  It's just a lot more cumbersome and complex.

    Here is a link to my log cabin, on the bank of the Roaring Fork in Gatlinburg.  Take a look at the walls on the inside.  There is no paneling or sheetrock on the walls.  It's just the logs.

    https://cabinsneargatlinburg.c...

     Thanks Collin. Your log cabin looks great !! 

    Thank you for some key inputs on log cabins and complexy involved and also turned out to be expensive. What are your thoughts on modular homes vs stick built from short term rental perspective in terms of appreciation as well as economy in building the same sq ft ?

  • Collin HaysBusiness Member
    Property Manager · Gatlinburg, TN · Member since 2020 · 3k+ posts · 4k+ votes
    4y
    Quote from @Udawath Praveen:
    Thanks Collin. Your log cabin looks great 



    Quote from @Collin Hays:

    This is a great question. In the mountains, many folks want to stay in something that looks like a log cabin.  There are some really nice modular homes out there that look great.  And you can make a frame house appear like a log cabin easy enough by log siding on the exterior, and pine or cedar tongue-and-grove paneling on the interior.  

    At least in the Gatlinburg area, most of the "log cabins" are fakes.  They have the siding and paneling inside.  But the truth us, most guests don't know the difference, nor do they care.  It still looks and feels like a cabin.

    In 2017, I built a genuine log cabin in Gatlinburg.  I had yellow pine (very hard wood) logs shipped in from Canada.  They were rectangular, and you basically stacked them just like "Lincoln Logs".  But this is a very expensive and arduous process:  For a light switch, you've got to literally bore a hole down 5 or 6 feet of wood with a special bit, to run the wiring.  Similar for outlets.  And the wood moves and needs occasional adjusting with special tools.  The wood also needs routine staining and sealing, plus you have to protect it from critters like wood peckers and carpenter bees.

    But...I wanted to the real thing.  I wanted a true log cabin that would be there long after I am going.  I was only going to get one shot at it, so I did it right.  A log cabin is going to be a multiple more expensive than any frame built house.  It's just a lot more cumbersome and complex.

    Here is a link to my log cabin, on the bank of the Roaring Fork in Gatlinburg.  Take a look at the walls on the inside.  There is no paneling or sheetrock on the walls.  It's just the logs.

    https://cabinsneargatlinburg.c...

     Thanks Collin. Your log cabin looks great !! 

    Thank you for some key inputs on log cabins and complexy involved and also turned out to be expensive. What are your thoughts on modular homes vs stick built from short term rental perspective in terms of appreciation as well as economy in building the same sq ft ?

    If it is a really well-done modular, I don't see any difference in future values. But I think what you will find is that a top-shelf modular will be at or near the cost of a frame house.  

  • Rental Property Investor · Nashville, TN · Member since 2019 · 14 posts · 4 votes
    4y
    Quote from @Udawath Praveen:
    Thanks Collin. Your log cabin looks great 



    Quote from @Collin Hays:

    This is a great question. In the mountains, many folks want to stay in something that looks like a log cabin.  There are some really nice modular homes out there that look great.  And you can make a frame house appear like a log cabin easy enough by log siding on the exterior, and pine or cedar tongue-and-grove paneling on the interior.  

    At least in the Gatlinburg area, most of the "log cabins" are fakes.  They have the siding and paneling inside.  But the truth us, most guests don't know the difference, nor do they care.  It still looks and feels like a cabin.

    In 2017, I built a genuine log cabin in Gatlinburg.  I had yellow pine (very hard wood) logs shipped in from Canada.  They were rectangular, and you basically stacked them just like "Lincoln Logs".  But this is a very expensive and arduous process:  For a light switch, you've got to literally bore a hole down 5 or 6 feet of wood with a special bit, to run the wiring.  Similar for outlets.  And the wood moves and needs occasional adjusting with special tools.  The wood also needs routine staining and sealing, plus you have to protect it from critters like wood peckers and carpenter bees.

    But...I wanted to the real thing.  I wanted a true log cabin that would be there long after I am going.  I was only going to get one shot at it, so I did it right.  A log cabin is going to be a multiple more expensive than any frame built house.  It's just a lot more cumbersome and complex.

    Here is a link to my log cabin, on the bank of the Roaring Fork in Gatlinburg.  Take a look at the walls on the inside.  There is no paneling or sheetrock on the walls.  It's just the logs.

    https://cabinsneargatlinburg.c...

     Thanks Collin. Your log cabin looks great !! 

    Thank you for some key inputs on log cabins and complexy involved and also turned out to be expensive. What are your thoughts on modular homes vs stick built from short term rental perspective in terms of appreciation as well as economy in building the same sq ft ?


    I'm actually in the process of plopping a modular "cabin" on a plot of land in downtown Gatlinburg. It's cheaper and faster compared to the 12-15 months you have to wait for stick built. You'll maybe wait 2-4 months for it to be turnkey. I have seen a cute 600SF cabin keep up with the rest of the 1b1b cabin homes in terms of price last year, but that was last year. Remember the people buying your STR's are investors looking for the same thing that you're looking for, which is gross and marketability/cuteness on Airbnb and VRBO. I'm assuming you can still take depreciation on these modular homes as well.

  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    4y

    I think you'll find that stick-built will always have greater appreciation than modular. A Realtor would be able to give you more input on this.....

  • Investor · Greenville, SC · Member since 2015 · 1k+ posts · 1k+ votes
    4y

    Yea I concur with @Collin Hays  about the true log cabin.  I have one that is true log on the above grade portion and I won’t do another true log.  Unless you really want one they are a pain.  A stick built is so much easier to work on, add electrical, insulate better etc.. and Like Collin said, the guests don't really care if its true log or just looks like it.  

  • Jared HottleBusiness Member
    Real Estate Agent · Cedar falls IA Waterloo, IA · Member since 2020 · 902 posts · 549 votes
    4y

    I am not familiar with the area but at least in my area log cabins can be a real nightmare from banks not wanting to touch them and insurance companies not wanting to insure them. I do not know much about them but it also seems hard to make mechanical improvements or repairs down the road given how the structures are built. 

    If it were me I would look for a modular company that does A-Frames with big open areas and windows. These seem like they would be affordable, scalable and still provide the experience one would expect in a mountain setting. 

  • Member since 2022 · 3 posts · 1 vote
    4y

    Thanks all for great inputs. Any recommendations for modular home builder which is economical and good in quality for Vacation home as well as STR perspective.

  • Collin HaysBusiness Member
    Property Manager · Gatlinburg, TN · Member since 2020 · 3k+ posts · 4k+ votes
    4y

    I would be remiss if I failed to point out the advantages of a genuine log home, as there are many:

    1.  Longevity.  A well constructed log home will last hundreds of years.  There are many log homes in Europe that are near 1,000 years old.

    2.  Strength.  A log home can withstand pretty much anything that mother nature can throw at it.  Downed trees, high winds, etc.

    3.  Energy efficiency.  There is no better insulator than 10 inch solid wood logs stacked together.  My heating and cooling costs are negligible.  Wood has "thermal mass", which will keep inside temps moderate throughout the year.  Log homes can be 20 percent (or more) efficient than conventional homes.

    4.  Quiet.  The sound insulation provided by logs cannot be duplicated by man-made insulation.

    5.  No worries about mold, mildew, or insect infestation between the studs.  There are no studs or hollow spaces.  Stroll around your log home a couple of times per year to see any potential issues and fix it easily.

    6.  Superior craftsmanship.  Log homes have to be constructed with precision.  Everything must be exact.  Cuts, corners, dovetails, mitering.  When you are in a log home, it is easy to observe the difference.

    I got a mortgage on my log home and insured it without quibble.

    I do not regret building a log home, and I would do it again.

  • Investor · Greenville, SC · Member since 2015 · 1k+ posts · 1k+ votes
    4y

    @Collin Hays I think the key Collin is having the right builder to do it right.  My experience with the builders I have used in that area = I will NEVER use them again.  So many builders are saying yes to jobs they have absolutely no experience with or are going the cheapest route in all areas of the build as they try to crank out as many as they can.  This is also an area where newbies are getting hosed in that area too.  The one cabin I have that is true log, is just true log on top floor and above grade.  I have not experienced any energy efficiency benefits in that cabin.  Maybe because its just the above grade that is true log, I dunno.   I have had issues with electrical problems with a hard time getting them resolved.  I have not experienced the sound insulation either.  I have experienced gaps and cracks to the outside as the wood gives and takes with the temperature changes.  I have not experienced superior craftsmanship either - I experienced sub par craftsmanship.  Maybe not in the construction of the logs and joints specifically, but in the overall assembly.  In my case I believe it really comes back to the level of craftsmanship that the subcontractors and builder come to the table with.  Unfortunately I have not seen a good level of that in the area.  My current build is in month 21 for just a 2 bed pool cabin.  I have had my CO for 3 months now and it's still not rentable, but that is another story.

    I have heard all of those benefits you mentioned concerning a true log cabin before, but again, I think it comes down to the builder to do things right in order to gain those benefits.  It sounds like your log cabin was done right.

    But you are right in the Smokies there is no trouble getting it insured.

  • Property Manager · Branson Missouri · Member since 2022 · 73 posts · 51 votes
    4y

    I have and own 14 log cabins and manage approximately and additional 20 others.  We purchased our first log cabin in 2005.  These are sided with d cut logs and no drywall.  Over the years we have had to corn blast  ($$$$) them and reseal the cabins.  They look incredible being over 17-20 years old.   We are building 9 more cabins having considered modular.   We choose to build the same type we currently own when considering the consequences of appreciation and also guest comments.   In the modular homes/cabins when I walk across the floor you can tell it is modular.  They also are not as solid as a log cabin.  Appreciation and financing is another huge deterrent of a modular build.  We know a modular builder that has told me his wishes he purchased homes instead of the modular ones years ago as I have since ours have appreciated so much greater than a modular build.  We do add to our listing sites into the property descriptions: all wood - no drywall.   The wood is a lot of upkeep but worth the charm and guest appreciation and demand. You can see one here https://www.rentbranson.com/Th... 

  • Investor · Beaver Falls, PA · Member since 2015 · 275 posts · 82 votes
    4y

    @Collin H.Nice !

  • Realtor · Pigeon Forge, TN · Member since 2018 · 230 posts · 111 votes
    4y

    @Valerie Budd

    We have modular and site built cabins we manage here in the Smokies. Guests do not care. When renting for income potential guests only care about location, the view, and amenities. One is a tiny home and the quality is amazing. It is all about the builder and the location.

    That being said regarding financing, and selling there are huge differences already mentioned.

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