Advise on where to build our next short term rental.

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Advise on where to build our next short term rental.

Peter Castrianni
Member since 2020 · 19 posts · 11 votes

I live in NJ, we build a awesome A-frame in Sevierville TN and its doing great so far. We are ready to do our 2nd build STR. We would like something closer to home 5 hours max drive time instead of 11 hours to TN. Ime getting analysis paralysis trying to figure out where to build. I keep going back and forth between Shenandoah valley area such as Luray, Stanley. Finger Lakes NY, Catskills NY, or Poconos PA. Or should we just build another in TN. What market can a new modern unique a-frame cabin do the best. Need some advise. Thanks!

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Account Closed
Investor · FL · Member since 2016 · 332 posts · 388 votes
1y
Quote from @Collin Hays:

I'm interested in this topic, too.  I have always held that building is the most expensive way to get into STRs, but with the prices in the Smokies staying high with very little activity, I do wonder what the current building cost psf is in the Smokies. Any ideas Peter?

I have built seven in the Smokys and currently waiting on final structural drawings from the architect for my next build.  So in a few weeks I will have current costs from a highly reputable builder in the area.
Building costs change greatly depending on the lot.  I built two last year across the road from each other with one well 800 ft deep and the other 1,600 ft deep.  Have a flat lot? It can save up to $100k on foundation.  Do you have solid rock a few feet deep? Then you will pay more for hammering out stone for septic and foundation. Do you need a longer driveway? It could add $25k for concrete.  Is the lot already cleared? If not it might cost up to $20k if you want it hauled away.  We haven't even touched design and material choice. Do you want tile showers or regular tubs? I expect without furniture you can expect a build to run from $175sq ft for plain Jane cabin to $400+ sq ft for a unique design with custom cased glass.
My design is in between so I am expecting $225 to $275 sq ft with a $50k well allowance and $20k septic allowance on what I call a medium grade slope for Sevier County.
I am choosing to build because out of the about 2,500 cabins on the market right now only about a dozen interest me design and location wise and they are wanting $400 to $600 a sqft. Now I can build something unique to the Smokys at a lower price per sq ft including land acquisition.  Building isn't for everyone. There are still several subpar builders in the area so if you go the building route pay for a background check of your builder.  If the builder has been cutoff of credit at the local building supply store (84 Lumber/Tyndalls) and is on a cash only basis then stay away from them. Building isn't for the faint of heart, but can be very worthwhile for those who persevere. 
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  • Collin HaysBusiness Member
    Property Manager · Gatlinburg, TN · Member since 2020 · 3k+ posts · 4k+ votes
    1y

    I'm interested in this topic, too.  I have always held that building is the most expensive way to get into STRs, but with the prices in the Smokies staying high with very little activity, I do wonder what the current building cost psf is in the Smokies. Any ideas Peter?

    [email protected]806-672-7102
    SMOKY MOUNTAIN FALLS INC.51 Review
    WebsiteView Page
    0Reply
    • Account Closed
      Investor · FL · Member since 2016 · 332 posts · 388 votes
      1y
      Quote from @Collin Hays:

      I'm interested in this topic, too.  I have always held that building is the most expensive way to get into STRs, but with the prices in the Smokies staying high with very little activity, I do wonder what the current building cost psf is in the Smokies. Any ideas Peter?

      I have built seven in the Smokys and currently waiting on final structural drawings from the architect for my next build.  So in a few weeks I will have current costs from a highly reputable builder in the area.
      Building costs change greatly depending on the lot.  I built two last year across the road from each other with one well 800 ft deep and the other 1,600 ft deep.  Have a flat lot? It can save up to $100k on foundation.  Do you have solid rock a few feet deep? Then you will pay more for hammering out stone for septic and foundation. Do you need a longer driveway? It could add $25k for concrete.  Is the lot already cleared? If not it might cost up to $20k if you want it hauled away.  We haven't even touched design and material choice. Do you want tile showers or regular tubs? I expect without furniture you can expect a build to run from $175sq ft for plain Jane cabin to $400+ sq ft for a unique design with custom cased glass.
      My design is in between so I am expecting $225 to $275 sq ft with a $50k well allowance and $20k septic allowance on what I call a medium grade slope for Sevier County.
      I am choosing to build because out of the about 2,500 cabins on the market right now only about a dozen interest me design and location wise and they are wanting $400 to $600 a sqft. Now I can build something unique to the Smokys at a lower price per sq ft including land acquisition.  Building isn't for everyone. There are still several subpar builders in the area so if you go the building route pay for a background check of your builder.  If the builder has been cutoff of credit at the local building supply store (84 Lumber/Tyndalls) and is on a cash only basis then stay away from them. Building isn't for the faint of heart, but can be very worthwhile for those who persevere. 
      4Reply
  • Peter Castrianni
    OP
    Member since 2020 · 19 posts · 11 votes
    1y

    We spend around 500k for a 2 bed 2 bath 1300Sqr ft cabin.  That doesn't include the land cost  

    0Reply
  • Mike GrudzienPro Member
    Lender · Eugene, OR · Member since 2019 · 2k+ posts · 1k+ votes
    1y

    Antarctica: no competition and you can call it an "Airbnb Experience"...

    2Reply
  • Stephanie JacobsonBusiness Member
    Real Estate Agent · Ithaca, NY · Member since 2016 · 429 posts · 324 votes
    1y

    I work with a lot of folks buying STRs around Ithaca and Watkins Glen. Both towns have restrictions, but the surrounding areas don't. I really like Lansing, Ovid, Hector, Burdett, Trumansburg. The different areas have different strengths, so it's important to work with someone who knows what to look for. Nearer to Ithaca, you can find a charming country home or cabin for around $200-400k. Closer to Watkins, the range is more around $150-300k. Let me know if you want me to send some options your way!

    0Reply
  • Andrew SteffensBusiness Member
    Tampa, FL · Member since 2022 · 4k+ posts · 3k+ votes
    1y

    I manage over 60 STR's in Tampa but am originally from Southern NJ "Jersey Shore". I manage one in Ventnor and it does very well, new construction 2 blocks from the beach. I have also found success in LBI before.

    [email protected]813-563-0877
    Vacation Rentals of Florida53 Reviews
    WebsiteView Page
    0Reply
  • Matt Mertz
    Leander TX · Member since 2020 · 179 posts · 150 votes
    1y

    I think the greatest advantage of building is that you can custom build something that stands out from the competition, which is becoming increasingly more important.  The Smokies is a great market for that because there's a large inventory of cabins that look the same.

    We built one cabin in 2021 (sleeps 16) on a burn lot and it's doing great. We purposely designed it for STR life.

    We're building another cabin now on another burn lot (1 bedroom) and we have hopes that it will appeal to couples.  That's clocking at about $386/sq ft but it's small and has a giant deck on it.  Some trades charge a minimum for their work despite the small size of the house.  So probably not the best metric to estimate other builds.

    There are other cabins in the neighborhood but I think we stand out so I hope that helps when we go live.

    2Reply
  • Collin HaysBusiness Member
    Property Manager · Gatlinburg, TN · Member since 2020 · 3k+ posts · 4k+ votes
    1y

    The prices versus 8 years ago are astounding. In 2016, I had a cabin in Gatlinburg burn to the ground, so I rebuilt it. I went with a true log cabin, Jeld-Wen wood casement windows, high end finishes throughout. Including all furnishings, it cost be $336K to build a 1420 square foot cabin.  I am guessing that same cabin would cost $800K to build today.

    [email protected]806-672-7102
    SMOKY MOUNTAIN FALLS INC.51 Review
    WebsiteView Page
    1Reply
  • Jules Aton
    MD/DC · Member since 2024 · 1k+ posts · 1k+ votes
    1y

    @Collin Hays prices of everything now are disorienting! 

    Something that concerns me when considering STR or really any rental property is the ease of resale. When it comes to RE I have commitment issues so a priority for me has always been having an easy exit. When looking at beach properties I purposely purchased a mid range property as opposed to high end which are amazing and deliver higher income but tend to sit on the market longer, racking up more holding costs, than less expensive properties.

    0Reply
  • Matt Mertz
    Leander TX · Member since 2020 · 179 posts · 150 votes
    1y

    First cabin we built in 2021, all-in including land, construction and furnishings was $286/sq ft.  No way we can build the same thing today.

    We're grateful we built the big one first and can still build a small one.  It's our only 2 properties in the Smokies and we're hoping it will bookend both ends of that market.

    0Reply
  • Maria Robinson
    Member since 2025 · 1 post · 1 vote
    1y

    @Autumn Cain thanks for the info. I'm also in PA and would love to pick your brain about STR in the Poconos if you have some time.

    1Reply
  • Autumn Cain
    Real Estate Agent · Stroudsburg, PA · Member since 2024 · 17 posts · 7 votes
    1y

    @Maria Robinson Sure- feel free to shoot me a message

    0Reply
  • Steven WernerPro Member
    Member since 2019 · 16 posts · 2 votes
    1y

    NYS is looking to ban STR's statewide. Wayne county in NY just banned them. The county in the Finger Lakes Wine country where I have several properties are considering banning STR's as well. My advice is stay away from NYS as a whole. Needless to say, I have several properties for sale!

    0Reply
    • Stephanie JacobsonBusiness Member
      Real Estate Agent · Ithaca, NY · Member since 2016 · 429 posts · 324 votes
      1y
      Quote from @Steven Werner:

      NYS is looking to ban STR's statewide. Wayne county in NY just banned them. The county in the Finger Lakes Wine country where I have several properties are considering banning STR's as well. My advice is stay away from NYS as a whole. Needless to say, I have several properties for sale!


      Hmm, which county is that?

      Tompkins County had the conversation, but it was decided that even here, many of the municipalities just don't have the ability to enforce such a policy. Who's going to check? Who's going to issue fines? Which court will handle this? It doesn't make sense. Ithaca city and town passed restrictions, but no other municipality has. Officials in towns like Lansing and Trumansburg have said they can't imagine logistics on such a regulation. How much harder would it be for Schuyler county, for example? They don't have the bureaucratic power Tompkins has.

      As fas as a statewide regulation, New York is always barking. The Good Cause eviction conversation raged for years, and in the end, only certain municipalities adopted the policy. Hochul and other threatened that no matter what, this law would pass in full for all New Yorkers! It did not and will not.

      Hey, I'd love to know where you're selling properties! I've got people who will take them off your hands. :)

      0Reply
  • Steven WernerPro Member
    Member since 2019 · 16 posts · 2 votes
    1y

    It is Yates Co. I can send you the listings if you like. 

    0Reply
    • Stephanie JacobsonBusiness Member
      Real Estate Agent · Ithaca, NY · Member since 2016 · 429 posts · 324 votes
      1y
      Quote from @Steven Werner:

      It is Yates Co. I can send you the listings if you like. 


       Yes please!

      0Reply
  • Laurent UrichPro Member
    Member since 2024 · 43 posts · 11 votes
    1y

    @Benjamin Louie

    I'll gladly take the $44,656/month STR in Poconos, PA.

    0Reply
  • Steven WernerPro Member
    Member since 2019 · 16 posts · 2 votes
    1y








    https://www.zillow.com/homedetails/1292-Mays-Mill-Rd-Penn-Ya...

    This says it's under contract; however, the buyer is all of a sudden not qualified for the loan.

    I just reduced the price on this next one.  

    https://www.zillow.com/homedetails/3766-Italy-Hill-Rd-Branch...

    Please let me know if you are interested.

    Thanks,

    Steve

    0Reply
  • Stephanie JacobsonBusiness Member
    Real Estate Agent · Ithaca, NY · Member since 2016 · 429 posts · 324 votes
    1y

    @Steven Werner that's great, thank you! I'll reach out to Angelica if I have anyone who's interested. 

    0Reply
  • Steven WernerPro Member
    Member since 2019 · 16 posts · 2 votes
    1y

    Ok sounds good. I have another one that is not listed yet and the Trust requires I interview three agents before listing it. If you are interested, please let me know. 

    1Reply
  • Benjamin Louie
    Property Manager · Erie & Millscreek PA | Maggie Valley & Haywood County NC · Member since 2024 · 264 posts · 119 votes
    1y

    @Peter Castrianni 

    Peter, sounds like you’ve got great momentum from your first build. If you want something closer to home, the Poconos and Catskills are probably your best bets — both within easy weekend driving distance, with steady demand and a proven market for unique cabins. The Catskills tend to command higher ADRs, especially for design-forward properties like A-frames, while the Poconos benefit from the sheer volume of weekenders and families. Finger Lakes is solid, too, with year-round winery/lake traffic, but land/build costs can be higher. Shenandoah is more affordable and less saturated, but right at the edge of your 5-hour limit. If you’re after convenience and repeat weekend traffic, stay closer to the Poconos/Catskills. If you want to play the uniqueness angle for higher nightly rates, Catskills/Finger Lakes may be the stronger long-term bet

    0Reply
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