Reduce $ through design

[BlueRidge]

I'd like to build cottages as rental units - and less cost the better

1 bed 1 bath, and 2 bed 2 bath units.   600-1200 soft.

Are there general design choices I can make that will reduce costs.

Examples:  pier foundations will be cheaper, or is building on slab?

Are certain building widths optimal?  Like is 14 ft wide and longer length less costly, or is 20 foot square less cost? If not building on a slab?

If foundation and roofing costs are higher than framing, is two stories better or in smaller cottages does the stairwell cost plus lost footage to stairs make single story better?

If building for rental (high wear and tear) are certain material upgrades cost savers in the end.  Like Adventec type flooring in bathrooms worth the added expense.  And cement board vs drywall in bathrooms.

Any ideas you have to lower construction costs would help.

Can I combine septic into one system, say four 1b 1b 600 sqft cottages the same as a 2400 soft house 4b 4b?

Also, I have white oak and pine trees on my property and a neighbor with a hydraulic saw mill he's not
Using anymore.  Are the cost savings worth cutting and milling my own lumber?

Thanks

[MountainDon]

 
  Regarding the area the cabins will be built in... is the property be subject to zoning, building code enforcement?  If so you should check with the local authorities as to what you can build.

For example, pier foundations are not covered under the usual building codes unless they are specifically engineered. Engineering costs can be more than following the prescriptive code methods of slabs, crawl spaces with full perimeter footing . Slabs can be very cost effective in many places. Depending on frost depth a full perimeter footing can be hand dug or dug with assistance of a roto tiller.

Advantec is an excellent subfloor material with most of the benefits in the construction stage before the building is framed, roofed and dried in.  Cement board is specified by code for some wet areas. Much better lasting as shower and tub walls for example.

The septic requirements are going to be set by the state or municiplaity. Best to ask them about how a communal system would have to be designed.

If you plan on insuring the structures the insurance company may balk at writing coverage for a building that is not code compliant.

Saw milling can work, but again depends... code in most places requires grade stamped lumber. Some locations have exemptions for home milled lumber. But because this project could be called "commercial" even those rules, if present , may not be valid.

Building size... smaller is cheaper, but too small may not be attractive to potential users/renters. Theoretically a square building gives more sq footage per dollar spent on wall structure, but I believe a user friendly layout is more important. Two floors means less roof to cover the floor area. But, IMO, second stories are impractical in a small building as stairways use up a lot of floor space and can make room layout more difficult. And if you are going to rent I don't think you should try to skimp on stairs and make them too narrow or steep with the idea of saving floor space. If the stairs have a winder, that can make moving some things like beds inconvenient at best.

What it comes down to, is a lot of the basic questions about what can be done, or what foundations can be used, what septic, what fresh water system, are best answered by the authorities having jurisdiction, plus any lenders or insurers may be involved.  In many places once there is a "commercial flavor" to the project the rules can change. Plus there is the question of if there is a need for liability insurance when you rent facilities to others.

Those are some of my answers and thoughts about building to rent... not an expert but somply what came to mind.

[flyingvan]

We just built 4 one bedroom units at Lake Cuyamaca for rentals.  We kept the septics separate, though the county would have allowed us to treat them like a four bedroom house.  You are one tampon flush away from a clogged septic (they swell to football size.  Renters WILL flush all kinds of stuff.  We had someone dump their RV waste, and the formaldehyde based additive they add to their holding tank killed the septic)  so you keep the problem to one unit instead of shutting down all your rentals

[ChugiakTinkerer]

I think you've got a lot of room in the design choices to settle on something that meets your needs.  Size alone won't be the source of your best savings, it will be whatever reduces the amount of labor you need to pay for.  Local conditions and labor markets will determine whether a slab is better than a raised floor with a perimeter foundation, etc.  It's almost always cheaper to build up rather than out.  You might give some thought to your rental market and how you want to position your units.  The absolute cheapest bungalow to build will probably also bring in the lowest rent revenue.  You may want to explore what the rental market currentlky supports and see if building units a little more upscale pencils out for you.

If you are in a place with a rental market you probably also have yo deal with many county permits.  Your own lumber will likely have to be graded if used structurally.  It is probably cheaper to buy yard lumber rather than mill and grade your own.  Your trees can be milled for interior and exterior finish wood though with no need to have them graded.

[BlueRidge]

Apparently you can hire a licensed grader by the hour.

I have an open roofed farm building where I could store the wood, and the idea is to mill during the winter for two / three small cottages each year.  Store the wood for 6-8 months, rinse and repeat.

My question is, it looks like this will reduce my lumber costs by 75%?  Not including my time

Also, lumber appears to be 30% of total costs, maybe more if I use wood interior finishes vs drywall, wood flooring instead of carpet or vinyl.

All things considered I could save 15-20% off of total costs, which would reduce my mortgage and help rental cash flow.

Are these estimates ballpark, or way off on perceived savings?

Thanks for your inputs

[cbc58]

We just built 4 one bedroom units at Lake Cuyamaca for rentals. 

If you don't mind me asking - can you share what these cost you to construct ?   What size were they?   Tks

[flyingvan]

  They are 500 square feet.  I'll take pictures next time I'm home.  We spent about $88K each on them, we ended up going stick built.  They rent solid--however, we didn't start with these.

  We started with these--


    They are kits from Conestoga.  Our rangers and volunteers had fun putting them together.  They were $15K each and we saved on shipping by buying multiple units....They have a full size bed, and bunks.  Electric light and heater.  No kitchen, no bathroom---tenants have to walk across the parking lot to our public restroom and we have coin operated showers. 
     These are very inexpensive to rent and therefore very popular.  They are easy to clean to get ready for the next tenants.   There are no utensils, bedding, etc.  to walk away.  http://conestogalogcabins.com/?s=&search_category=&search_type=floorplans&property_types=log-cabins&story_homes=&sqft%5B1%5D=0&sqft%5B2%5D=500&sortby=sqft_high

[BlueRidge]

Flyingvan,  I have seen this style (Conestoga cabins) at several RV parks to provide an option, they must be popular.

You found a ready market for something more upscale?

I saw a website of someone in Canada who was inspired by the tiny house craze, but they built slightly bigger tiny houses and placed them on perimeter foundations.   14x20 with traditional bath, kitchenettes, and porch large enough for two comfortably.  Owner said they were booked all summer, and he wished he had winterized them because there was strong shoulder season interest.

Seeing similar owner occupied homes on the Carolina coast, high land cost but inexpensive house.

[Don_P]

I have a sawmill and several farm buildings I've made from trees on the property. If I don't factor in my time they were quite cheap in bought materials. I can upscale in unique ways as well. I'll be installing cherry wainscot paneling tomorrow in the dining room. I've been pulling the nicest boards out for the cabinetmaker, we'll do that wing in cherry. I showed the owners some shagbark hickory that I sawed and stacked when we started, they are talking about it for the entry and staircase. The living room will be in spalted maple. I've been working on a project the past several days, it contains 20 species from my backyard in the VA Blue Ridge. At the end of that we were talking, I think I could go out and do it again without repeating... you can't buy that kind of stuff at Lowe's.

So different species is one upscale a mill will give you. Another, I can't compete with commodity lumber, I'll buy a 2x at the building supply, You want an 8x8 or 6x12? Now we're talking. I can make custom sizes for low cost. Timberframe and post and beam become affordable, and beautiful. My building official will also allow an engineer to grade structural wood. In NC for residential you can use trees from your property for your residence, but I believe that is the limit of it.

[flyingvan]

    Lake Cuyamaca is a State Recreation and Park District.  It's completely funded by access fees and fishing permits.  We lose money on the cost of fish vs. sold permits, mostly due to transport costs.  We make it up in providing housing options.
     We have tent camping, dry RV group sites, full hook up sites,  the Conestoga sleeping cabins, a large duplex, and our latest, the 4 (soon to be 7) one bedroom cabins.  They all rent well but the sleeping cabins are by far our most popular and easiest to maintain.  We started with two---one for our east shore bait and tackle shop, and a ranger residence next to that.  (Full kitchen and bath).  We liked them, and converted 3 RV sites to sleeping cabins.  The ranger residence has since become another rental.
     If I had to choose a single option for cabins it would be the sleeping cabins with a nearby common public bathroom.  People bring, and leave with, all their own stuff and they are very easy to maintain.

[flyingvan]

   OK  BlueRidge I finally got a chance to take some pics of the stick built rentals.  I know your theme is low cost, bet we went with quality materials and saved money by doing most of the labor ourselves.   They are situated to take advantage of the lake view



   

[BlueRidge]

Flyingvan, great cabins.  Are you mainly summer, or year round with your full 1 bedroom cabins?

A side note, my grandparents had five summer cottages like yours.  When they were older and didn't want to run the summer cottage rental business anymore, they contacted their favorite customers and sold them the cottages with owner financing ... continuing cash flow through loans as an exit strategy.

[BlueRidge]

Don_p.    Sounds great, enhance the quality of the homes through accent woods in the interior, that would be too expensive if you weren't a miller. 

[flyingvan]

Year round.  Spring, we get the wildflower crowd.  Summer we get the Zonies trying to escape the desert heat.   Fall, we're the closest place to San Diego that gets Autumn colors.  Winter people try to catch a snow storm (though they are more common earl Spring) 
We also put in horse corrals to attract the equestrians.  I strongly recommend against this, really not worth the hassles.

  Some other weekend rental lessons learned---

1) All your problem tenants will be single night renters.  A two night minimum will save you lots and lots of problems.  If you must do single night rents, insist on a deposit.

2) Have someone available and nearby to deal with problems immediately

3) Don't install fireplaces.
   a) If you must install fireplaces, make sure they are strictly gas fireplaces.
   b) If you must install wood burning fireplaces, set the fire up for people.  MOST people have no clue how to build a fire and will pack newspaper, all the toilet paper, the phone book, and rental agreement next to an oak round and expect it to burn.  Now you have no toilet paper, tons of ash, and a singed oak log to deal with.

4) Buy very sturdy furniture.

4) Buy even sturdier insurance.