Welcome all! Today Dakota and I caught up about his A-Frame build in Fredericksburg, TX, the hottest STR markets in Texas in 2025, and how DEN's plans helped build out Dakota's short term rental portfolio.

Check out The Pedernales A-Frame's IG here and Airbnb page here.

1. Introduction and Background

Mike: All right, sir. Well, uh, we'll start with the softball questions first. Who are you? What DEN design did you build and where did you build it?

Dakota Haines: So my name is Dakota Haines. I'm a native Austinite. I selected the A-Frame 2.2 Cabin DEN build, and I built it in Fredericksburg, Texas. 

Mike: Amazing. Amazing. What about that particular design caught your attention? Why, you know, why did you want to build that one? Also what's the name of the project? 

Dakota Haines: The project's called the Pedernalis A-Frame because the land we built it on sits right on the Pedernalis River, which, you know, unless you're from Texas, you probably won't know what that is.

But very, you know, very popular. People love it, especially, you know, when it's not drought season here, it's very pretty to kind of like overlook... that river. Um, I really selected that design. I mean, DEN has obviously created so many different plans since then. I mean, this was years ago. I don't remember there being the selection that I see today on there.

But I knew I wanted an A-Frame. I was adamant about being in the short term rental market. I needed to make something unique. I'm no builder. And so being able to just go buy plans, as an investor, to me that were easy to just provide to a builder -that was gold. And so that's why we selected DEN.

Um, I really wanted something that was... something you didn't see. And in Texas, A-Frames are not nearly as common as like, maybe you would see in like the Northwest. And so it kind of sits on a very popular highway in Fredericksburg. Um, and so you would not believe how many people that reach out to us on Instagram, just because they see our, A-Frame overlooking the river.

Mike: Oh, that's amazing. It's amazing. I mean, yeah, we hear that, uh, from, you know, short term rental and like boutique hospitality operators. It's like, how do you differentiate, you know, in the design itself, uh, to attract engagement and bookings. Um, and cool. 

So you wanted to like build an A-Frame to stand out in this market, right? I take it there were like no A-Frames that you could have bought and like renovated. 

Dakota Haines: No, there aren't. There's somewhat of a competitor, I would say, in Fredericksburg that builds kind of like unique style properties that are, uh, I know they have a couple A-Frames. What we really wanted to do in terms of differentiating was create like a premium experience.

And so theirs are very primitive, which I know obviously has its It's niche as well in the short term rental space, but we wanted to create like that elevated experience where it's a unique design But you also have the modern features and amenities that people have come to expect when they stay in an airbnb 

2. Unique Features and Amenities

Mike: Awesome. What, what other cool amenities do you have as part of this property? 

Dakota Haines: Yeah, so we added a pickleball court. Um, I actually ran a poll on Instagram on, uh, things we maybe should add. Luckily, we've got some additional space with the land that we purchased. And so, that I think is the fastest growing sport in America.

That was a no brainer to kind of just pour a concrete slab and painted ourselves. It actually came out really well and you would not believe how many people utilize it or book it just to play pickleball. Um, we have a hot tub that is a popular amenity in Texas. I highly recommend anybody in the space look into getting a hot tub.

I mean, you can get them fairly cheap these days and especially Texas, you know, it's not cold all the time. We've only got a couple of winter months where it gets Cold, but that's a very attractive amenity once it gets in those 20 to 30 degree temperatures for people. Um, other than that, I think it's really just the, the layout of the design.

I mean, today's short term rental guests, they don't just want a place to stay. They want a story to tell. And I think that DEN design like really helped us capture that with this A-Frame. 

3. Building Experience and Challenges

Mike: That's amazing. That's amazing. So this is the first time that you built a structure from the ground up.

Is that right? 

Dakota Haines: Yeah, correct. 

Mike: Uh, yeah. I mean, like, you know, we have a lot of prospective customers who are like, who are wondering. You know, like 'do I have what it takes to build something from the ground up?' You know, it like can be a intimidating experience and you know, that's like also why DEN exists, right?

Like we have these plans. We have a process. We have a platform. what advice would you give to somebody who is attempting to build something from the ground up, whether it's a DEN or something else, like, you know, what, what were like some learning lessons or best practices that you would share with other folks?

Dakota Haines: Yeah, I think that's a good question. I mean, things always are going to go wrong. Like that's, that's something I think every person that wants to get into this, whether that's like real estate investing or building, like that's something you should expect, like you're going to have obstacles that you have to figure out a way to overcome.

I mean, for us, the first one we encountered was before we even started with DEN's plans. We were in 100 year flood zone that I really had no idea about. And so we had to deal with a lot of local permits and regulations. I mean, luckily for us, the permitting process is not very extensive in this area of the country.

I know other people deal with many more issues when it comes to that. So my first advice would be like, understand what that process is before you even think about getting started. Um, but really, once we were able to get started, I mean, again, first, Full build we've ever done. I mean I had remodeled one house basically before I started this project. 

The plans are what made it so easy. I was able to find a builder - i'll shout them out concept eight Um, it's a local friend of mine. She was in austin but willing, and said she had workers that would go out to fredericksburg, which is not close by any means It's about an hour and a half away. And every person that I had quote locally I had never built anything like that either.

Like there's just, there's not anybody that's going to say, 'yeah, we've built this kind of A-Frame build before in Texas'. And so I knew it was going to be a challenge, but I mean, we bought the plans, I handed it over to them. And then other than like some little minor tweaks that we made to the design, like all we changed really was the finishes.

And so, I mean, we started that project in, I want to say February. We were done in December. 

Mike: Oh, amazing. That's amazing. We hear this time and time again, it's like the plans stand on their own, you know, and it's like the best way to like establish a strong relationship between you and your general contractor, because so much of it is already predefined.

So no one's left scratching their heads on what to do. and yeah, you know, the plans are also like flexible enough so that you can sub out fixtures and yeah, you know- 

Dakota Haines: And I think that was also key, like the flexibility of being able to make those, those tweaks, like, I want to say the plans initially, it's been a couple of years, obviously, since we completed this, but I want to say the plans for the [A-Frame] 2.2, like they include mini splits. Uh, talking with our builder, weren't sure if we could, you know, get a, HVAC system installed that wasn't going to be mini splits, but obviously the aesthetic is a lot better if you don't have these big, mini splits sticking out of the walls. Um, we were able to tweak that.

He said we could get it done. We ended up getting it done with really no issues at all. And so now we've got this cleaner aesthetic with, you know, the full system. Obviously there's a lot of glass with these A-Frames. So I think it helps with the heating and cooling inside the unit as well. And then, yeah, the tweaks with the finishes.

There was no issues really at all. Um, and so I think, yeah, the plans kind of stood for themselves and made the process super simple. 

4. Performance as a Short-Term Rental

Mike: Awesome. Yeah. It's so funny too, because sometimes I talk with folks and they're like, 'can we change the fixtures and finishes?' I'm like, 'absolutely!' You know, it's like, we're not like a doctor here.

We're not like prescribing you this stuff that you, and it's like, you can't do it any other way. Right. But, uh, yeah, it's funny when, when people ask me that, I'm like, 'absolutely!'

You, you, 

Dakota Haines: Yeah. 

Mike: Do whatever you want, it's your house! 

Tell us also a little bit about... you should share, share with the audience also a little bit about your background and like the companies that you run, um, but, wanted to just check in on like how the thing is even performing as a short term rental asset for you.

Dakota Haines: Yeah. Yeah. So, I mean, my background, I am a real estate investor. I own multiple short term rentals of my own. I also own a management company, Nomad STR, that is a vacation rental management company. And so, we have about 143 properties across Texas. And, I mean, there's nothing better than, like, obviously, I have key insight data.

Everywhere, like for different markets, Fredericksburg, Austin, Round Top, Tripping Springs, Marble Falls, all these cities. And DEN is my only unique -what I would consider super unique- build. From a design standpoint. And Fredericksburg is typically a Thursday through Sunday town. It's a very small town for the people that are not familiar, but it's, it's very unique.

It's an old German town. It's got a lot of great shopping, tons of wineries, which is the big attraction. And so a lot of people are traveling from Dallas, Houston, Austin, the Metro areas. Just as sort of a getaway for the weekend This build has been able to capture not only those weekend guests and book out months in advance But we're getting weekday bookings.

I think February which is typically a slow month in Texas, just not a lot going on in the month of February. We were at 98% occupancy at the A-Frame. There's none of our properties that are even close to touching that. We have some very that perform very well. We have properties that do over $400,000 a year in revenue, but they are not at the occupancy level of the A-Frame.

I mean, I don't want to give away too many secrets here, but like there will not be another short term rental investment that I do, that I don't build from the ground up. That is a unique stay, probably with DEN. 

Mike: Yeah, that's awesome. great to hear, you know, and I think for us, like we, you know, the intention behind DEN was to just like, give folks in America, access to cooler looking buildings at like a more accessible price point. Like, yes, we've got A-Frames, like, and you're right, like, the catalog has grown, like, we have like over 40 designs now. We've got this new design series called the Outpost series that has a really cool architectural profile.

Um, and you know, we hear this time and time again, you know, it's like people build these things and then they stand out in the markets that they're in. And that translates to like great performance. 

Dakota Haines: Yeah. I, I couldn't agree more. It's, like the winning strategy, I would say now especially with short term rentals, right?

Like the design, it's not only about just the aesthetics, like, it's almost a financial strategy now. Like these unique homes, they command a premium when people are booking them. Like I have properties that sleep the same amount of people in Fredericksburg as the A-Frame. The amount of money that it commands versus those? Completely different.

Books faster. It's more revenue for me, obviously as an investor. Even from an SDR standpoint, like it's obviously way more effective to have these unique builds, but yeah, I mean, I know not all of these are short term rentals too. And some people may just not like the standard, typical cookie cutter home that everyone builds these days.

5. Future Plans and Market Insights

 

Mike: Yeah, totally. I mean, we, yeah, we just interviewed a lovely customer. Her name is Erica, who had built an A-Frame house and she lives in it full time. She's like, 'yeah, this is like how I want to live'. And I was like, 'right on'. You're like primarily focused in Texas markets. Are there any other markets in the United States or any other projects in the United States, either boutique hospitality or STR projects that you're interested in, that you're inspired by? I know Hocking Hills, seems to be a really cool.

Dakota Haines: Yeah. 

Mike: These days, everyone's got like an, you know, some sort of like natural spring fed infinity pool.

Dakota Haines: Yeah. 

Mike: Miraculously. You know, like, uh, but yeah, wondering if there's any projects that, that you know about, domestically that are interesting to you. 

Dakota Haines: Yeah. I mean, they've captured the Instagram audience for sure up there.

Sometimes I'm really jealous of the fact that I feel like Texas, while like there's some beautiful parts of Texas, like you just don't get that sort of like allure that like you have up in the Hocking Hills or like, Up in the Northwest where you've got like these huge trees and like this beautiful Greenery everywhere like Texas, it's a little bit more... like we've got the hill country, right? But it's just hills, you know, we still got a bunch of cedar trees. There's not grass, lush green grass everywhere... so sometimes i'm a little jealous, but I also I want to stay in like a market that I know potentially. 

Where I see a lot of opportunity for myself, actually, is a town called Terlingua in Texas that I think mimics a lot of what you see in Joshua Tree, California. 

The challenge there is just the lack of basic infrastructure. I mean, there are short term rentals there, but they are primarily running on like solar and, you know, like, essentially Porta Potty's. I want to eventually be able to create something similar out there that kind of blends in with that desert architecture, but again, also offers the premium amenities that people have come to know and expect not everybody wants to stay out there and risk the power being out and, you know,

Mike: Believe it or not Dakota, not saying that you're late to the game because you know, every market deserves like another mover and potentially a best mover.

Um, but there is, there is a pretty big DEN development in Terlingua already. 

Yeah 

Dakota Haines: Not surprised. 

Mike: Stardust Big Bend. We did this project with a developer. They've been featured in the Wall Street Journal, uh, and yeah, there's like a bunch of DEN A-Frames, A-Frame Weekenders and a DEN Modern Cottage on this property.

Dakota Haines: Yeah. 

Mike: Yeah. 

Dakota Haines: Yeah. I'm looking at the website now. Yeah. I guess they beat me to it, but yeah, I think that market though will just continue to get better. Fredericksburg was very popular in STRs before we built our A-Frame and I know it's performing better than the market there.

So I'm, you know, whoever thought of that was very smart to do so, but there's a lot, there's a lot of land for sale out there still. 

Mike: Yeah, I mean, I'm just like looking at the press photos on their website and it's like the landscape itself just like looks bananas 

Dakota Haines: Yeah 

Mike: Like real, you know, like real like yeah real american adventure.

That's what it reads. 

Dakota Haines: Yeah, and there's a really big... there's a golf course out there that's a super big attraction. I think there's someone who owns it in Houston. It's like a billionaire. And so I'm not sure what kind of access he's granted everybody. But, um, they've got like one direct flight out there.

And I think as they continue to kind of like build more developments and more community things that people can do out there, I really think that's gonna, that market has nowhere to go but up. 

Mike: That's awesome. How far is that market from where you guys?

Dakota Haines: Well, see, that's like the challenge, is assume it's like in Texas, so it's like close, but that would probably be like a seven hour drive. 

Mike: Ugh! 

Dakota Haines: That's just how big Texas is. I'm in the middle of Texas. That's like all the way, like over there to the border basically. 

Mike: Oh wow. And that is, yeah, seven hours is, uh, that's at least 

Dakota Haines: Yeah. And I'd be interested to hear who they used to build out there because... not many people live out there full time. 

Mike: Yeah. Yeah. Yeah. Wow. That's great. 

All right, man. I mean, like, any last words of wisdom before we hop off the interview?

Dakota Haines: Yeah, I mean, I, I guess just kind of depends like what you're, what you're going for.

Um, but whether it's you're building a unique home that you just want to live in, especially if you're like someone that's like a digital nomad, we know how popular that is these days. Like, and you've never built a home, you don't have the experience, you're unsure about who your builder is.

Like, DEN takes the hard part out of building something unique. And for me as an investor, like obviously for me, that was gold. I had no experience building A-Frames, building anything. And so it made the process super easy. I mean, again, if I could afford to just keep replicating this over and over, I probably would.

Um, but I will not do another short term rental build or buy another short term rental myself, unless it's something I build that's unique with DEN. 

Mike: Awesome, dude. Well, listen, uh, on behalf of the whole team here at DEN, thanks so much for spending some time with us today. Uh, the project looks incredible.

Congratulations on all the, uh, success Dakota. And, uh, yeah, thanks for being a part of part of the journey. 

Dakota Haines: Yeah. I appreciate it, Mike. Thank you for having me. 

Mike: Awesome, man.