Overview
Difficulty
Complex
Process
Subdivide, Entitle, Improve, Sell
Total Cost
$1,535,100
Value Created
$405,650
Monthly Revenue
$18,000
Site Map - Raw Lot
Who is this for?
This parcel is divided into two unique areas: the western section has more clearings and is bordered by road, while the eastern section is more secluded with denser tree cover. The lot's extensive road frontage—on both the west and south sides—makes it a prime candidate for subdivision. A subtle 30-foot incline from northwest to southeast offers opportunities for privacy and optimal views. The varied landscape, featuring a mix of tree types and open fields, sets the stage for diverse experiences. With the southern edge exposed to roads, thoughtful screening and building orientation will be crucial. Additionally, two creeks meander through the property, adding another layer to the site's character.
Our vision for this parcel involves four distinct structures. In the western section, we plan to build two ADUs—a Little Cottage and a Cottage—for rental. To the east, in the more secluded area, we'll construct a Medium Bar Standard for sale. Finally, at the parcel's center, we'll modify a Small L to feature additional bedrooms, optimizing its rental potential when not in use.
To start this project, you’ll need to purchase the lot for $100,000. You can purchase this lot directly from the realtor Elizabeth A Hampton at Keller Williams Realty who can be reached at 845-928-8000, or let us know, and we will be happy to make the introduction. You can also find this lot under our active spring in parksville where you can subscribe to explore more beautiful parcels.
Eagle View
Phase 1
To delineate the property's functions, we'll subdivide it into two lots. The first lot will focus on the rental community, while the second will be sold off to generate a lump sum, helping to offset development costs.
Site Map - Phase 1
Subdivision Process
Phase 2
In phase two, post-subdivision, we'll dive into site planning and groundwork. This is where we align the nuts and bolts of construction with our vision. The planning stage involves a deep dive into the land's features, crafting a strategy that balances cost, time, and functionality. We'll evaluate both indoor and outdoor spaces to pinpoint the best location for the main house, considering design and budget. This stage is key for differentiating our property, as it's when we craft the unique experiences that will make us stand out in both the rental and sale markets.
Site Map - Phase 2
Groundwork Prep
Phase 3
In phase three, we'll concentrate on constructing the two ADUs—Little Cottage and Cottage. These units are designed to kickstart rental income swiftly.
Site Map - Phase 3
ADU Types
In this phase, we're building the ADUs, prioritizing functionality and user experience. Each unit will offer sleeping space for up to four, a well-outfitted galley kitchen, distinct living and dining areas, a wood-burning stove, and a separate powder room.
The two ADUs will be situated on the site's western cleared area. A brief walk from the parking pad to the units will craft a sense of arrival. The Little Cottage will sit near the creek, while the Cottage will be tucked amid a grove of trees, boasting a view. Stays in these ADUs will offer a genuine sense of escape.
Phase 4
In phase four, after the rental units are up and running, we'll move on to building a HUTS Medium Bar on the subdivided lot. The aim here is to make a sale that recoups the initial capital invested in the property.
Site Map - Phase 4
Standard Type
In this phase, we'll concentrate on constructing the Medium Bar, a 2.5-bedroom home designed for maximum functionality in a compact space. A loft above the guest rooms will house the primary bedroom and a separate lofted work area.
The Medium Bar will be thoughtfully nestled at the property's rear, near the running creek. This secluded woodland home should be an easy sell and could also seamlessly integrate into the rental infrastructure we're building for the rest of the property.
Phase 5
In Phase Five, with a parcel sold and rental income flowing, you can tackle the project's final piece: constructing a main house for both rental and personal use.
Site Map - Phase 5
Standard Type
In this phase, we'll concentrate on constructing a Small L. This home is designed to take advantage of views across the whole of the site, while blurring the lines between indoors and outdoors. Dedicated office and laundry area. We will Modify this to include a loft over the private bar of the house where we will but in an additional bunkroom.
The Small L will be at the heart of the center of the property pl plugging into the walking path and the hot tub as well as it in combination with the other cabins in order to accommodate larger groups. The structure will be the center of the property, looking down the property out towards the north to a wooded area. This home can also be an eventual retreat or area to retire to.
Your Completed Property
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.