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The 6 Phases of Building a Log Home |
1) Get the loan financing.
Before you get too deep in plans or building lots, its important you know how much log home you can afford. Try to pay all bills on time for a few months before you apply for the loan, just to shore up your credit rating.
What's a ballpark cost for a log home? Well, let's guess that a nice 5 acre buildable lot will run $100,000 (we're really guessing here), and a 1,600 square foot log cabin, built and finished, will run somewhere around $200,000. That's $300,000 you're going to need to realize your dream. Mortgage lenders really like to see 20% down, which means you'll need a $60,000 nest egg before you talk with the banker, plus $1,400 a month for the mortgage.
About putting 20% down - yes, you can get away with 10%. But you'll have a higher monthly payment and pay a higher interest rate. That disadvantage could be shifted if you're willing to rent out your log cabin even a few weeks of the year. $800 a week is a low-ball estimate of what you could get for renting your log cabin out. It all depends on the location, and how nice the log home is when its completed.
If you don't want to handle all the renting details, hire a property management company or call a few local realtors and see if they'd be willing to find, screen and service short-term renters for a slice of the rental cost. This way you can get started on your log home dream for just $30,000. Plus, you'll be building equity for free and have a getaway spot whenever your log home is not rented.
2) Decide on a log home style and floor plan.
Time to break out the glossy log home magazines and catalogs - you need to go shopping. Working with the info about what you can afford, start making a folder of every attribute you want for your log home, pick a few layouts that you love, then go to a builder and get the cost estimate to build out the floor plans. After your first talk with the builder, you'll probably need to do some serious scaling back.
3) Pick a building lot.
More shopping, plus quite a bit of driving. Be absolutely, 100% sure that the land you buy has access, or road, rights (you'll need to get to the house), and either a sewer or an issued health permit or the guarantee of one. Consider how your home will sit on the lot. Go back to the builder and get the cost to have the house positioned in the lot the way you want. Also have the builder give their detailed opinion on what it will take to build on the lot you're chosen. Also consider the other lots around yours... what if someone decides to permanently park a trailer in front that beautiful floor to ceiling view you've planned?
4) Get building permits and find a general contractor.
Get all the permits completed before any work begins. Next, choose between "turn-key" construction, where you let a general contractor handle all the details, taking on the role of general contractor. If you're an excellent project manager, and you learn fast, becoming your own general contractor can save you 20% of construction costs for your new house. Just be sure to find a very, very good log builder.
5) Begin construction of the driveway and house's foundation.
6) Get the log home kit delivered and assembled.
If you've hired a general contractor, its their job to schedule the delivery of the log home kit and make sure all the sub-contractors appear when they should. If you haven't hired a general contractor, you'll need to orchestrate all the subscontractors until the log cabin is complete. This part of getting a log home built can be the hardest, but if you're up to it, there's a lot of money to be saved. | | Author Info: Pamella Neely writes about log homes for Log Home ABCs, Best Log Cabin Kits and many other sites. |
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