How I Created a Tiny House Hotel and Sold It for $7 Million

Inspired by a vision of creating a Nordic-style retreat, I began an ambitious project in Texas.

After discovering a five-acre property listed on Zillow in Waco, conveniently close to where I live, I seized this opportunity. Utilizing a mix of a short-term loan and personal funds, I acquired the land for $138,000 in March 2021.

Over just nine and a half months, I oversaw the conceptualization and construction of a collection of seven cabins, blending them into the surrounding natural landscape. The project's $2.5 million cost was funded with a construction loan from a nearby bank and capital raised from family and friends.

Launching the resort in January 2022, a travel influencer on Instagram helped propel the resort to popularity, leading to an overwhelming wave of bookings.

We prioritized Instagram as our main platform, collaborating with influencers and creating engaging content. This strategy paid off as some guests became regular visitors, contributing to our $860,000 revenue in the first year alone.

From the start, I was open to the idea of selling the property, should the right offer come along. I believe everything has a value that can be capitalized upon.

Ultimately, in October 2023, I reached an agreement to sell the property known as Live Oak Lake for $7 million. This transaction provided crucial lessons on negotiating, particularly the importance of skilled brokers and legal advisors.

Developing and Selling My Dream Property

Building Live Oak Lake from the ground up was a labor of love, akin to nurturing my child. The initial phase post-launch posed several challenges, particularly integrating property management systems while my wife tackled cleaning tasks.

To streamline operations, we hired part-time staff for cleaning and guest coordination, as well as operations management. This allowed me to focus more on marketing, even though it sometimes required late-night efforts due to the nature of the hospitality business.

Despite implementing efficiencies, running the resort proved to be a constant source of stress. Maintaining exemplary guest experiences necessitated my personal attention to every review.

Anticipating our property's value, we initially listed it in summer 2022 but withdrew to relist at a higher price in early 2023.

Engaging with a broker specializing in outdoor hospitality was a turning point. Close to finalizing a $6.5 million deal, the prospective buyers unexpectedly withdrew. Shortly thereafter, a private group presented a superior $7 million offer, which we successfully accepted. Many original staff remain employed, maintaining continuity for guests.

The property's distinct charm, our established audience, and exceptional service were instrumental in achieving our sale price.

Lessons Learned and Life Moving Forward

The process underscored the value of expert legal and broker support. Having a local broker eased logistical burdens, facilitating interactions with potential buyers and lifting emotional weight off my shoulders.

This allowed me to delegate confidently, minimizing my need to micromanage the sale process.

Selling Live Oak Lake at that juncture felt right. The experience equipped me with deep insights into resort management. I've since relieved much of my stress and am now free to pursue other interests from an office and studio at home.

While open to new projects, I'd prefer a structure where I can delegate daily operations to a full-time manager.

The journey of building and running the resort was an education in real estate, marketing, and hospitality. The timing and price aligned perfectly, making the decision to sell a wise one.