Jump Brook Road

Overview

This development opportunity is located in the eastern corner of Delaware County, near the vibrant towns of Stamford and Roxbury and close to ski mountains. The lot features several exciting elements, including a stream with a culvert crossing, stunning views, an existing shed, and diverse forest and field areas. Our plan includes building two ADUs on this site: a modified Entertainer ADU and a Cottage ADU. The lot's unique characteristics are perfect for a dramatic reveal of the structures. A key part of our design process will involve carefully planning the arrival sequence and enhancing the experience of moving through the property.

Difficulty

Easy

Process

ADU

Total Cost

$496,500

Value Created

$142,550

Monthly Revenue

$9,900

Timeline

Who is this for?

This development opportunity is ideal for a couple seeking a financially savvy method to create their woodland retreat. The strategy focuses on investing in a beautiful plot of land while adopting a restrained and strategic approach to construction to minimize expenses. The outcome is a highly functional and rentable getaway in the Catskills, designed to potentially offset its costs through rental income.

The Location

Delaware County, near Roxbury and Stamford in the Catskills, is celebrated for its stunning landscapes and serene atmosphere. Surrounded by rolling hills, lush forests, and meandering rivers, it's an ideal spot for outdoor lovers and those seeking a quiet escape. Roxbury, a gem in the area, blends historical charm with cultural and natural attractions. The diverse terrain features farmlands, streams, and mountains, perfect for hiking, fishing, and skiing. The welcoming communities of Delaware County, including Roxbury, are known for their hospitality, charming shops, and cultural sites, making it both an inviting destination for visitors and a beloved place for locals.

The Lot

This ten-acre lot offers immense potential. It's a long, rectangular plot stretching from northeast to southwest, featuring a gradual elevation gain. Near the road, the front is lightly wooded, adorned with the beautiful Jump Brook and scattered deciduous trees. The middle section boasts a cleared field leading up to an old stone wall, while the back is densely forested with evergreens and exhibits more varied topography. This diverse lot presents numerous captivating spots and stunning views. A significant amount of groundwork, including a driveway culvert and electrical setup, has already been completed, greatly adding to the lot's appeal. Additionally, there's a shed in good condition at the front of the lot.

The Development

For this development opportunity, we envision a two-phased approach to build two small cabins on the property. In the first phase, we plan to construct a modified Entertainer ADU near the stone wall and renovate the existing shed to function as a garage and storage area. In the second phase, we aim to build a Cottage ADU closer to the creek for guests and add a wood-burning hot tub as an added amenity.

Acquisition

To initiate this project, the lot is available for purchase at $90,000. If you're interested, please contact us, and we'll connect you with our HUTS buyer's broker, who will assist with property due diligence and streamline the closing process for the lot.

Eagle View

Site Map - Raw Lot

Phase 1

Groundwork & Site Planning

In Phase 1, we define the project's vision and start the groundwork. At this stage, you're acting as a land developer, tasked with understanding the land and forming a strategy that balances finances, timing, and functionality. We place equal importance on outdoor and indoor spaces, aiming to find the house's best location with both design and cost in consideration. It's also crucial to strategize your financing, encompassing both initial cash outlay and ongoing expenses. Paying for groundwork upfront increases your equity in the land, a vital factor for securing bank loans later, as the land serves as collateral.

Site Map - Phase 1

Site Planning

At HUTS, our site planning starts with a detailed analysis of each lot, focusing on sunlight patterns, tree types and coverage, topography, natural features, property boundaries, and zoning regulations. This in-depth knowledge shapes our siting strategy, tailored to enhance desired experiences and align with both the landscape and our clients' preferences. We refine our development strategy through site visits and client feedback, guaranteeing an optimal approach to siting.

Site Planning Concept

In the site planning phase, we develop a design parti, an overarching concept that brings cohesion to the project. Starting with the lot's natural features, we create experiential concepts that blend the terrain with our design and landscaping standards, maximizing each site's potential. For Jump Brook Road, our parti highlights the lot's diverse attributes, crafting dramatic transitions from the stream to the revealed structures. The design process will significantly focus on the arrival sequence and the experience of navigating through the lot.

Groundwork Prep

To initiate the construction of the Entertainer and the Cottage, we'll first identify the central build zone within the lot, establish an access driveway, and install power. Subsequently, we'll design the septic system and locate the well site. We advise making your offer contingent on a successful perc test and septic design approval, although we don’t foresee this being an issue on this site. Tree removal for driveway and site preparation will be minimal to preserve the forest, with the option for further removal later if needed.

Financing

Maximizing value starts with understanding your financing options. Banks usually need a 20% down payment of the total cost to reduce their risk, which can be covered by cash or the appraised value of the land. Ideally, your investment should enhance your home's value, particularly if the appraised value surpasses your cash contribution. At HUTS, our strategy centers on reaching key milestones that banks consider crucial for approving loans, ensuring that lots are fully entitled and prepared for development.

Phase 2

Your Cozy Cabin

In the second phase, our goal is to construct your cabin, which will be a customized version of the Entertainer ADU. This modification aims to optimize the layout to capture the best possible views from the property. We'll carefully position the cabin to take full advantage of the natural surroundings, ensuring that the interior spaces are aligned with scenic vistas. By focusing on this strategic placement, we aim to enhance the living experience, making the most of the cabin's location to provide breathtaking views.

Standard Type

Entertainer ADU

In this phase, we plan to build an Entertainer ADU. This cabin optimizes living space by eliminating dedicated sleeping areas on the ground floor and incorporating a lofted sleeping space above. We aim to modify this cabin to enhance its spaciousness, recognizing it as the primary living area on the property. Our focus will be on ensuring the living space is highly functional.

Experience

This cabin will be perched on a hill within the property, strategically oriented to capture the stunning views. The back of the cabin will nestle against the forest and stone wall, creating an exciting outdoor space with the stone wall and the tree line. There's potential to enhance this area further by hanging string lights between the forest and the cabin's roof.

Phase 3

A Place for Guests

In the third phase, we plan to construct a cabin for guests and rental purposes, located near the existing shed and stream at the front of the property.

Standard Type

Cottage ADU

In this phase, we will build a Cottage ADU that adheres closely to our standard design. Our classic 10’ x 20’ ADU is designed with usability and function in mind. It features dedicated sleeping areas for four, a fully-equipped galley kitchen, combined living and dining areas, a wood-burning stove, and a separate powder room.

Experience

This cabin will be situated near the front of the property, close to Jump Brook, allowing the soothing sounds of the babbling brook to be enjoyed from the deck. Its placement near the shed facilitates convenient storage for items needed to rent out the cabin. Positioning it at the front of the lot also enables it to operate independently as a rental or integrate seamlessly with your cabin when hosting guests.

Your Completed Property

The finished property will offer moments of surprise and delight as you navigate from the brook, through the field, and up to the rear, gradually unveiling the view. Financially, this project embraces our preferred development strategy, the HUTS approach, balancing personal enjoyment and investment potential. This necessitates a practical mindset: budgets must be adhered to without compromising on aesthetics or functionality. Our experience has shown that this balance results in superior homes at more affordable prices. A property that provides a well-considered, holistic experience becomes more appealing on the rental market. This approach transforms an intriguing lot into a magical home.

Development Opportunity FAQs

How do I start?

Fill out the form at the bottom or email us a hello@huts.com. We will set you up with the HUTS buyers agent who helps source and outline these development opportunities. You can schedule a time to walk the property for a comprehensive understanding of the land and the proposed development. Our team will support you from closing through the finished home and beyond.

How will I finance this project?

We’ve seen many different financing approaches depending on our clients financial situations. Typically though, we see a combination of cash upfront and a construction loan to permanent mortgage. HUTS has preferred relationships with local banks in the areas we work since we find they have the best understanding of local development and can therefore offer preferable rates. The upfront cash is to purchase the property, for design and documentation and if possible for initial groundwork. Banks typically require 20-30% of the total cost to minimize their risk. This can be in cash or appraised land value. Ideally, the more you can invest in the land less you have to give the bank in as a downpayment in cash better. The remaining development expenses are covered by a construction loan. We suggest a construction-to-permanent mortgage, a 31-year loan that initially has an interest-only phase during construction. After construction completion and receipt of the occupancy certificate, it converts into a 30-year fixed mortgage. This loan option involves just one set of closing costs and reduces carrying costs during construction, which is vital for clients aiming to cover these costs with short-term rental income, thereby minimizing the duration of expenses without rental income.

Does HUTS offer financing?

HUTS does not provide financing as we are not a financial institution. However, we have extensive experience in navigating various financing structures for developments and are eager to assist. Our close collaboration with financing partners, who are well-versed in our business model and have a successful history with our clients, ensures expert guidance in this area.

Who will build this development?

We will source a build partner from our contractor network. At HUTS we spend an enormous amount of time building and vetting an extensive network of contractors. Our rolodex is particularly deep in the Catskills, Hudson Valley and Berkshires and we are continually adding new partners. We think a lot about contractor bandwidth in terms of houses per year and execution quality in terms of price per square foot. From the moment a client reaches out to us we are thinking about who will be a good fit to match them with based on who we know to be available with their timing, size and scope of the project and temperamental fit. Building is a team sport and the client contractor relationship is critical for the project's success.

Does HUTS do Design-Build or does it take a Design-Bid-Build approach?

At HUTS we take a hybrid approach that merges the best elements of both design-build and design-bid-build methods. By selecting a contractor early on and engaging in a preconstruction contract, we work collabrativly to arrive at a final construction cost together. In our experience this is by far the most cost effective way to build. Since our houses are repeated products, as opposed to one off prototype designs, we know where pricing should be coming in and the levers that can be pulled in value engineering. This gets us to a financiable, build ready project. This method combines the benefits of both approaches. By bringing a contractor on board early for design and pricing, we gain the efficiency of a design-build firm. Yet, we're not restricted to a specific contractor, which means the competitive pressure of the free market can help lower costs. Many contractors in our network often have experience with several HUTS projects, making them intimately familiar with our detailing and construction techniques.

Where do the rental figures come from?

Our rental estimates are informed by a blend of AirDNA data and local comparables. We set prices that are supported by the market yet avoid participating in a race to the bottom. In the regions we operate, the existing housing stock often falls short. Our distinct design and placemaking landscape strategy results in higher rental rates. Therefore, in our Pro Forma, we set rental rates slightly above the median prices from AirDNA, reflecting our design's value. We maintain a conservative stance on occupancy rates.

Will HUTS be able to support me on the rental side?

We’re working toward better supporting our clients on the rental side. With over 20,000 inquiries for HUTS services, we have tailored our standards and development opportunities to fit the needs of our clients and the market. Although most of our audience may not undertake a HUTS project directly, they are enthusiastic supporters. We aim to offer them opportunities to experience staying in a HUTS property. Efforts are underway to facilitate this more effectively.

How accurate are our construction numbers?

Our figures are estimates, but they are grounded in real numbers coming from current HUTS projects. With over forty active projects in the Hudson Valley, we have a clear understanding of construction costs. Groundwork expenses do differ based on each lot, taking into account factors such as house location, land grade, forest clearing, and more. We assess each lot individually to estimate these costs.

Why do you take phased approach to development?

We are happy to do as much or as little at once as our clients have an appetite for. People live with their properties over time and we like to break it up into chunks they can break up over time. Some of the main reasons we phase our projects are so that we can set a clear and feasible financial strategy to execute these projects. We like to think about the development in terms of what can be done upfront in cash you have on hand and what can happen behind a construction loan.

Can I see other HUTS houses?

HUTS projects are private property, but if you reach out to hello@huts.com we can set you up with a driving tour so that you can see built and in-construction HUTS projects.