If you’re dreaming about an Airbnb and you’re wondering how to start a short-term rental, the first big question usually sounds like this:

“Should I build a cabin from scratch or buy something existing and renovate it?”

Most people jump straight to cost per square foot. Totally fair, but also incomplete.

Because the real question isn’t just “What does it cost?” It’s “What can it earn?”

That’s something my friends at Oak & Ember Homes talk about a lot. They’re a local husband–wife team who design and build short-term rental cabins in Valley County, Idaho, with performance in mind, not just pretty pictures.

Let’s walk through how to think about building vs. renovating if you’re serious about starting a profitable short-term rental.

It’s Not Just Cost Per Square Foot – It’s Revenue Per Night

One of the comparisons Oak & Ember Homes shares involves two Airbnbs:

• On the same road near Tamarack Resort
• Similar square footage
• Same occupancy assumptions

On paper, they looked almost identical.

But the design-forward, scroll-stopping new build earned significantly more than the older, basic cabin.

Why? Because when guests are scrolling Airbnb, the home that stops their thumb is the one that gets booked. A purpose-built STR with intentional design, “hero” moments, and STR-friendly layout can command:

• Higher nightly rates
• Better occupancy
• More repeat guests

So when you’re thinking about how to start a short-term rental, don’t just ask:

“What does it cost to build vs. buy?”
Ask: “What will this property realistically make per year, and what would a better layout or design let it earn instead?”

When Renovating an Existing Cabin Makes Sense

Renovating can be a smart move, especially if:

• You find a well-located home that’s priced below replacement cost
• The bones are good (roof, foundation, mechanicals)
• You’re mostly updating finishes, furniture, and decor

Pros of renovating:

• Often faster to get on the market, sometimes in a matter of months
• Lower upfront cost than building new
• Existing utilities, driveway, and permitting are already in place
• You can phase improvements as cash flow begins

For many beginners, this path to short-term rentals feels less intimidating. You learn the STR game without taking on a full build, and you can always trade up later into a custom, performance-focused cabin.

But here’s the catch:

If the layout is awkward, bedrooms are small, there’s no good hangout space, or the exterior has zero curb appeal, there’s a limit to how far cosmetics can take you. You’ll improve revenue, but you may never unlock the full earning potential a purpose-built STR could have on that same lot.

When Building a New Short-Term Rental Wins

Building isn’t for everyone. But for the right person and the right lot, it can absolutely pencil, and outperform a renovation.

In Valley County, Oak & Ember Homes estimates roughly $350/sq. ft. to build, plus land often starting around $150K+, depending on location and utilities. That’s not small money, but a well-designed new build can:

• Maximize heads-in-beds without feeling cramped
• Create those “wow” moments that photograph beautifully
• Include STR must-haves: big mudroom, gear storage, durable materials, and wow-factor amenities that most older homes don’t have.

If your goal isn’t just to own a cabin but to build an STR that performs, new construction starts to make a lot of sense.

So… Should You Build or Renovate for Your First STR?

Here’s a simple way to think about it if you’re figuring out how to start a short-term rental in the McCall / Donnelly area:

Choose RENOVATE if you:

• Want to get on the market as soon as possible
• Are working with a tighter budget
• Find a place with solid bones in a great location
• Are okay with “good” performance while you learn the ropes

Choose BUILD if you:

• Have a longer runway and stronger financing
• Care deeply about brand, design, and top-tier performance
• Want a cabin engineered for durability and easy turnover
• Like the idea of something uniquely yours that can become a flagship STR in your portfolio

As a McCall Idaho Realtor who works with both investors and second-home buyers, the decision is very personal and comes down to your specific goals. That’s why meeting with a team early on is probably your smartest move.

And if you’re leaning toward building near McCall, Tamarack, or Donnelly, partnering early with both a local agent and a build team like Oak & Ember Homes can save you from buying the wrong lot or underestimating your true project cost.

Ready to Talk About Your Short-Term Rental Game Plan?

If a cabin or Airbnb is on your list this year and you’re still torn between building and renovating, we can map it out:

• What your budget can realistically do in today’s McCall, Idaho real estate market
• Whether an existing cabin or a new build lines up better with your goals
• Who you might want on your team – lender, builder, property manager, designer

You don’t have to figure out how to start a short-term rental on your own. With the right plan (and the right people), your “someday” cabin can turn into a real, bookable listing a lot sooner than you think.

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I’m Ragan Erickson, a McCall, Idaho–based Realtor® and short-term rental coach helping people build wealth and memories through real estate. After moving from Southern California’s mountains to Idaho’s, I turned my love for small-town living and data-driven investing into a business that helps others do the same.

On my blog, you’ll find tips for buying and selling in McCall, launching profitable short-term rentals, and designing a lifestyle you don’t need a vacation from. Whether you’re dreaming about your first cabin, an STR portfolio, or a full-time move to the mountains, you’re in the right place.

📬 Connect with me: yahooidaho.com | Instagram | TikTok
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