The co-owner and operator of a "tiny hotel" in Waco, Texas, is a 25-year-old man.
French used to run a cloud-based accounting business. He told Insider that he wanted to take advantage of the hot real-estate market in the area in the late 2020s.
The idea of creating a modern Scandinavian housing concept in Texas was something French had been working on.
As a child, French worked in his father's construction business, giving him the experience he needed to execute his idea. He purchased a 5-acre plot in March of 2021. The cabins were built in the style of the Scandinavians.
The Live Oak Lake has generated more than half a million dollars in bookings since it opened, according to the dashboard analyses. French got his business up and running.
French saved money to purchase the land. The cost of building his tiny hotel was projected to be about $1.6 million. French's father, two brothers, and father-in-law joined as minority partners in order to get a construction loan for 80% of the cost of the build.
French was able to use a line of credit from his father's construction business to cover additional construction costs. He said that when he first started out, he was confident that the property would be worth more than the cost, and that he would take out a bigger mortgage against the value of the property.
Live Oak Lake took a long time to finish. The general contractor for the project was French. He said the price went up because of labor shortages and soaring lumber prices, as well as additions like a pool and hot tub.
The property was valued at $3.1 million four months after opening, and French and his family did an 80% cash out refinance. Insider indicated that French received a loan of 80% of the property value.
French said it was important to show Live Oak Lake's selling point as an experience in order to get the construction loan.
French was able to pay off his construction loan and line of credit thanks to a new amount of funding.
French used online resources and videos to learn about the short-term rental industry. Robuilt is a channel run by a short-term-rentalentrepreneur. French asked friends of the owners of the short-term rental management company for advice. He said that automated property-management systems had been an important part of his success.
Live Oak Lake has a common area with a dock, picnic tables, and kayaks.
Each cabin has floor-to-ceiling windows and two floors with two bedrooms, one bathroom, an open-plan kitchen, and a living area, along with a washer and dryer, a private entrance, parking space, and an outdoor hot tub.
"It was very high cost per square foot because these are very high end, and we chose very nice finishes," French said.
French loves design. When I was young, I wanted to be an architect.
He wanted the hotel to have a village feel but also be lost in nature. The tiny houses are a couple hundred yards apart and surrounded by trees, but the string lights between buildings reflect the water.
The cabins are similar in appearance and price. On the weekends, a night in one can cost as much as 500 dollars. The nightly fee can go up to $1,200 per cabin during busy periods, such as graduation weekend or high school football.
To set prices, he uses an app called Wheelhouse, which can automatically implement price increases and discounts and standardize them across his accounts on Booking.com and other websites.
When customers book through a specific platform, the pricing software allows French to add markups to reflect what that platform charges hosts. French can access more information about his guests, such as their email, if they book directly from Live Oak.
Almost 70% of bookings come from Live Oak's website and the remaining 30% come from Booking.com and other websites, according to French.
Social media is used to market the hotel. He said that Live Oak's account gained traction by partnering with travelinfluencers and doing giveaways.
He said that the main funnel for booking was on social media.
French thought Live Oak was in a good position to weather the downturn. He said he'd seen an influx of wealthy or middle-class tourists from cities like Austin or Dallas who were choosing to vacation closer to home for short periods.
"We're already using that," French said, "but I think there's so much more opportunity here in Texas."
If you're an owner of a tiny home and would like to share your experience with other people, email kfields@ Insider.com.
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