The 6 Phases of Building A Log Home

These phases of building a log home are extremely simplified, but they'll give you a snapshot view of what it takes to get a log home built. Sometimes a few of these steps happen simultaneously.

1) Get the mortgage financing set up.
Its critical that you know how much log home you can afford. If you're going to need to buy a lot for a log home, you'll obviously have to include that in the price, too.

So, where to start? Well, assume a 5 acre buildable lot in a nice setting will run $100,000 (we're really guessing here), and a modest 1,500 square foot log cabin will run somewhere around $175,000. That's $275,000 you're going to need. Mortgage lenders really like to see 20% down, which means you'll need a $55,000 nest egg, plus $1,250 a month for the mortgage payment.

About the 20% down - yes, you can get away with 10%, but you'll see a higher monthly payment and a higher interest rate. That disadvantage could be rebalanced if you're willing to rent out your log home 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.

If you don't want to handle all the details, hire a property management company, or even call a few local realtors and see if they'd be willing to find, screen and service short-term renters for a percentage of the rental cost. This way, you can get started on your log home dream for just $27,500, and you can be building equity for free, plus have a getaway spot whenever your log home is not rented.

2) Decide on a log home style and floor plan.
Break out the glossy magazines and log home catalogs - its time to go shopping. Armed with the info about what you can afford, find what you want, then go to a builder and get the cost estimate to build your log home.

3) Pick a lot for your log home.
More shopping. Be absolutely, 100% sure (in writing) that the lot you buy has access or road rights (you'll need to get to the house), either a sewer or an issued health permit or the guarantee of one. Think about how your home will sit on the lot. Go back to the builder and get their blessing (and the cost) to have the house positioned in the lot the way you want. Carefully consider the buildable lots around you... what if someone decides to permanently park a double wide right out in front that beautiful floor to ceiling view you're planning?

4) Get permits and find a general contractor.
First you'll get all the permits in place. And then you'll decide on "turn-key" construction, where you let a general contractor handle all the details, or you take on the role of general contractor. If you're a good project manager, and you learn fast, becoming your own general contractor can save you 20% of construction costs. Be sure to find a very, very good log builder.

5) Begin construction of the driveway and foundation.

6) Get the log home kit delivered... and assembled.
If you've hired a general contractor, this is their job. If you haven't, you need to be ready to orchestrate all the subscontractors until the log cabin is complete. Ask anyone who's ever even renovated a kitchen, and they'll tell you this is not for the faint of heart. But if you're up to it, there's a lot of money to be saved.

How To Build A Log Cabin