Thinking about building a one-of-a-kind rental? Like the idea of a treehouse hanging over a lake with a pulley system to pull you luggage up?
It's going to demand attention & be your next cash cow, right?
Here's the scoop on why it's a great idea, but will also come with some unique complications when building it.
Stand out from the crowd! Unique rentals grab everyone's attention. Imagine people flying in from all over the world to rent your Airbnb. More attention means more people booking your place, which means more money for you. If done correctly, you might even be able to fill your calendar before you finish building.
But wait, there's a twist!
Building something totally unique can be tricky. Getting a loan for a treehouse will be challenging, and you'll need a builder who's up for the challenge, a lender that will lend in something that doesn't fit the traditional loan package, an appraiser that understands how to appraise unique structures, an inspector that is willing to do some research on how to inspect this type of structure, and more.
The good news is that once you get through the tough stuff, things get easier. It's like climbing a mountain – the view from the top is amazing!
Before you start, here are some things to think about:
Money:
Builders:
Permits:
Will the city let you build a treehouse?
Talk to them and the builder before you get started, like a big team meeting!
Added complications in the build process guarantee that competition will be slow to enter the market, at least at your level. So the extra work at the beginning can mean more money for you in the long run. I recently called 45 different lenders over a two-month time period trying to find one that would work with me. In the end, it was worth every second because the project got started with a traditional loan (aka not hard money) at a reasonable rate. Some of the rates I'd been given earlier in my conversations were 11.5% with 2 points to close!
Keep after it. It will likely pay off in the end due to what you learn going through the process.
