I have had this idea for a while and I think I have the money to do it now. I would really appreciate if anyone wants to give this a ponder and provide any constructive criticism as to what could go wrong with this or where I should even look to start on this. I have no experience with doing anything with real estate, I’m 24 and this would be my first real estate investment.
I want to buy some land in the North Georgia mountains, probably 1-2 acres with a nice mountain view. From a bit of looking around on Zillow it seems like I could get something like this for no more than $50k. When I get the land I’d like to build a small house on it and AirBNB it out to hopefully pay off the mortgage. I have looked into building a tiny house, which again I think would cost me no more than 50k.
I’m not sure whether I should go for a tiny house. Pros that I’ve considered so far is that they are significantly cheaper to build than a larger (actual) house and there’s no property tax to pay on them. Cons are it’s obviously much smaller, and it looks like they depreciate in value over time.
If I could spend a total of 100k on the land + the house so that my monthly payment is around 500/month, I would have to rent out the house at least 10 days per month at $50/day to pay it off.
Do these numbers make sense? What are your opinions on doing a cheaper+smaller tiny house vs spending more for a small 1 or 2 bedroom house? Any idea roundabouts how much the smaller 1 or 2 bedroom house would cost to build?