Conex Box (shipping container) as Short term rental.

Short-Term & Vacation Rental Discussions

Conex Box (shipping container) as Short term rental.

Member since 2021 · 13 posts · 0 votes

Brain storming with a friend about short term rentals. The idea of using Conex boxes was brought up. Has anyone don't this yet? The biggest problem that I've thought of so far is insurance. I contacted an agency and they said that they wouldn't do it. Now that I think about it, I need to investigate how they would withstand against a hurricane. I was thinking, purchasing a lot on a canal w/ ocean access, placing a conex box SFH on it, and adding a dock w/ a boat slip that would be used w/ the rental. Any help would be greatly appreciated.

0 Reply

93 views

Most Popular Reply

Kyle H.

Investor · Bryson City, NC · Member since 2013 · 162 posts · 122 votes

@Chad Pantel I currently have a 20' shipping container home rented on Airbnb and I also worked with a 40' container that is being used as a primary residence, that will be eventually turned into an Airbnb. I will probably never do another one. That being said, our 20' Airbnb rental is one of my best performing units. My location is in a very rural county with no zoning and we were able to use an RV electric service and an existing well and septic. It is a very cool concept but be prepared for a slog with inspections, insurance, engineering, financing, etc if you are in a heavily regulated area. It is totally doable but will require some effort, but the end product is very unique. Here is a picture of my 20'.

4 Reply

See this reply in the discussion

31 Replies

Jump to latestLatest

Sort by

Joe SplitrockPro Member
Moderator
Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
4y
Originally posted by @Chad Pantel:
Brain storming with a friend about short term rentals. The idea of using Conex boxes was brought up. Has anyone don't this yet? The biggest problem that I've thought of so far is insurance. I contacted an agency and they said that they wouldn't do it. Now that I think about it, I need to investigate how they would withstand against a hurricane. I was thinking, purchasing a lot on a canal w/ ocean access, placing a conex box SFH on it, and adding a dock w/ a boat slip that would be used w/ the rental. Any help would be greatly appreciated.

It is going to cost you more than traditional construction methods and you run into insurance, zoning issues, etc. People who do this are looking for a certain vibe, so it may be cool for themed STR. I am just not sure it is worth the extra expense and challenges as an investment. You could still build a cool themed rental using common construction practices that meet insurance requirements for hurricane zone.
1 Reply
Joseph CacciapagliaBusiness Member
Lender · San Antonio, TX · Member since 2020 · 1k+ posts · 1k+ votes
4y
@Chad Pantel I'm building a home out of four 40' boxes at the moment. I plan to use it as an STR. I ran into a lot of problems that neither me nor my contractor anticipated. I was able to get permits and in the end will have a very unique product, but it wasn't cheap.

I'm probably still 2 months away from completion, and I'm on my 3rd contractor. At the end of the day, it will end up being almost as expensive as a stick built house. I think if I built a second, I could bring that down a bit. There were some expensive lessons.
[email protected]979-218-2286
Joseph Cacciapaglia powered by Morty
Website View Page
2 Reply
Chad PantelPro Member
OP
Member since 2021 · 13 posts · 0 votes
4y
@Joe Splitrock thanks!
0 Reply
Chad PantelPro Member
OP
Member since 2021 · 13 posts · 0 votes
4y
@Joseph Cacciapaglia
Wow man, that is unfortunate. Thanks for the link and the insight on the situation!
0 Reply
Kyle H.
Investor · Bryson City, NC · Member since 2013 · 162 posts · 122 votes
4y
@Chad Pantel I currently have a 20' shipping container home rented on Airbnb and I also worked with a 40' container that is being used as a primary residence, that will be eventually turned into an Airbnb. I will probably never do another one. That being said, our 20' Airbnb rental is one of my best performing units. My location is in a very rural county with no zoning and we were able to use an RV electric service and an existing well and septic. It is a very cool concept but be prepared for a slog with inspections, insurance, engineering, financing, etc if you are in a heavily regulated area. It is totally doable but will require some effort, but the end product is very unique. Here is a picture of my 20'.
4 Reply
Chad PantelPro Member
OP
Member since 2021 · 13 posts · 0 votes
4y
@Kyle H.
Wow, that is incredible! I love it.
How did you end up getting insurance for it?
0 Reply
Kyle H.
Investor · Bryson City, NC · Member since 2013 · 162 posts · 122 votes
4y
@Chad Pantel Basically got a non permanent structure policy (in essence an RV policy) coupled with a g/l policy. Total cost was around $300/year. If it was permanently attached to a foundation it actually would have been easier.
0 Reply
Bruce WoodruffPro Member
Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
4y
Originally posted by @Kyle H.:
If it was permanently attached to a foundation it actually would have been easier.
Easy enough to do.....

0 Reply
Heidi Kenefick
Rental Property Investor · Hartford, CT · Member since 2017 · 168 posts · 163 votes
4y
@Kyle H.
That looks amazing!
I’ve been thinking of doing a similar thing in FL with a friend. He actually converts containers into offices etc for a large company so I have the crew to get it done, just wondering if it would actually be profitable.
1 Reply
Chad PantelPro Member
OP
Member since 2021 · 13 posts · 0 votes
4y
@Kyle H.
Interesting
0 Reply
Kyle H.
Investor · Bryson City, NC · Member since 2013 · 162 posts · 122 votes
4y
@Heidi Kenefick
I only have my experience to go off of, but I would say if you have a good location you should be able to get the occupancy to support it. We made a lot of mistakes and probably could have shaved a good $15k off the cost. Ours cost right at $60k, which included all construction, some storage costs, moving/crane work, landscaping, exterior utility work and outfitting it for STR. This was a project with a friend who owns 25% of the container and we placed it on an existing parcel we own and just charge the rental $125 lot rent/mo, so we have minimal land cost. We are on target to gross $32k including cleaning fees.
1 Reply
Heidi Kenefick
Rental Property Investor · Hartford, CT · Member since 2017 · 168 posts · 163 votes
4y
@Kyle H.
Wow that’s very impressive! Plus 60K isn’t bad considering what it would cost to purchase a house!
0 Reply
Matthew Paul
Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes
4y
Turning a con ex box into a house sounds cool .Sounds like too much work for such a small area . There are much easier alternatives . Such as a park model RV . Or the premade cabins that are used at campgrounds .
0 Reply
Chad PantelPro Member
OP
Member since 2021 · 13 posts · 0 votes
4y
@Heidi Kenefick
FL is where I'm looking too.
0 Reply
Heidi Kenefick
Rental Property Investor · Hartford, CT · Member since 2017 · 168 posts · 163 votes
4y
@Chad Pantel
Neat! What part of FL are you in?
0 Reply
Chad PantelPro Member
OP
Member since 2021 · 13 posts · 0 votes
4y
@Kyle H.
Thinking about it, I would have some additional costs. And I have no clue yet what the amount would be. So what were some of the areas that you believe you could have shaved off some expenses?
0 Reply
Chad PantelPro Member
OP
Member since 2021 · 13 posts · 0 votes
4y
@Heidi Kenefick
Stuart. You?
0 Reply
Chad PantelPro Member
OP
Member since 2021 · 13 posts · 0 votes
4y
@Matthew Paul
Thanks, I will look at those alternatives also.
0 Reply
Heidi Kenefick
Rental Property Investor · Hartford, CT · Member since 2017 · 168 posts · 163 votes
4y
@Chad Pantel
Just a little north of there, looking around Vero. Not sure if we will go through with the container idea, but I love it! Seems like a fantastic idea in a market that is growing
0 Reply
Chad PantelPro Member
OP
Member since 2021 · 13 posts · 0 votes
4y
@Heidi Kenefick
Nice!
0 Reply
Parker Brooks
Contractor · OH · Member since 2021 · 25 posts · 14 votes
4y
@Chad Pantel
No one lives in these but theyre still "STR"
My buddy converted some of his hook lift roll off containers ( think conex box without a lid) into swimming pool rentals. The same hook truck that hauls for his construction debris company picks up the pools empty and we broker in a water truck or use pumps if water source is near by. Extremely scalable and a popular item because in ground pools are on 2 year wait list where im at!
0 Reply
Jacob Pereira
Real Estate Agent · Austin, TX · Member since 2014 · 636 posts · 486 votes
4y
@Joseph Cacciapaglia, I'm surprised to read that it was cheaper than traditional construction. The few people I've known who looked into it all said that it was more expensive once you accounted for higher permitting and labor costs. Did you build in San Antonio, or somewhere else?
0 Reply
Chad PantelPro Member
OP
Member since 2021 · 13 posts · 0 votes
4y
@Parker Brooks
Very cool dude! Innovative!
0 Reply
Ryan Rochefort
Real Estate Consultant · Palm Beach Gardens, FL · Member since 2017 · 49 posts · 15 votes
4y
@Chad Pantel what market are you in? I'm in West Palm Beach, Florida and know of a few properties I could show you. Look up Mesocore, they have done a couple properties around here, I can also send you a link to the virtual tour I created.
0 Reply
Joseph CacciapagliaBusiness Member
Lender · San Antonio, TX · Member since 2020 · 1k+ posts · 1k+ votes
4y
Originally posted by @Jacob Pereira:
@Joseph Cacciapaglia, I'm surprised to read that it was cheaper than traditional construction. The few people I've known who looked into it all said that it was more expensive once you accounted for higher permitting and labor costs. Did you build in San Antonio, or somewhere else?

It's in San Antonio. My finished product will have a very industrial look, which enabled me to save quite a bit. A lot of the container homes I've seen look exactly like regular homes on the inside, and if I were doing that, it probably would end up being more expensive. I'm planning to use it as an STR, so that gave me the leeway to use some creative finishes and solutions. It will be more of an experience for guests, but won't necessarily be something a typical home buyer would want to live in. As one example, I'm using empty steel barrels to support my vanities, I'll have exposed ductwork and electrical conduit, and I'm just using a clear coat epoxy over the existing container floors.

[email protected]979-218-2286
Joseph Cacciapaglia powered by Morty
Website View Page
2 Reply

Join the conversationCreate a free account to reply, vote on answers and follow this thread.