BUILDING IN THE COLORADO MOUNTAINS

In 2021, I REALLY wanted a house which was exactly my own. No, not some mass-produced Lennar house in a subdivision A depressing Front Range view: https://maps.app.goo.gl/BR7qeqY3J43ESAji6 , but a location I enjoyed, sited in a daring way, and the industrial minimalism which matches my values.

Secondarily, I also wanted more cash flow. In 2020 and 2021, rates were effectively zero on stored cash https://fred.stlouisfed.org/series/FEDFUNDS and as usual asset prices were inversely correlated higher (than I believed their valuations should be). In the social confinement of COVID-19 I had gone off the diving board into the deep end of oligarch finance, accredited investing, and drastically changing my world view: from one where the future will be better to actively living my better future. In startup-land we talk about ARR https://corporatefinanceinstitute.com/resources/valuation/annual-recurring-revenue-arr/ quite often; essentially how much cash will you have coming in yearly. Applying the same principle to my life I needed to hit a certain yearly number where JZ the business would be independently profitable from a standard paycheck. A rental property could help me get there.

Search Area

I wanted a location where there are year-round activities (mountain biking, snowboarding, splitboarding, rafting, motorbiking), good food, some cultural events, affordable, and driveable from my (at the time) primary work location around the foothills of Boulder and Golden. The shortlist ended up with: Grand Junction, Gunnison, Hayden, Norwood, Pagosa Springs, Pinedale, Poncha Springs, Sheridan, South Fork, Taos. Further narrowed down to Pagosa Springs and Taos because of the libertarian approach to housing. I could build what I want how and when I wanted to with less paperwork than many other locations. Creede in Mineral county was another interesting spot, but soon you will be required to do some paperwork. Colorado HB23-1240 requires all counties to adopt statewide building codes (2018 or 2021 IBC/IRC) by mid-2026. Previously counties like Mineral, Baca, Sedgwick, Delta, and Montezuma did not have codes, a building department, nor in same cases a certificate of occupancy requirement. https://doh.colorado.gov/jurisdictions-without-building-departments-hud-code-homes I decided on unincorporated Archuleta county (Aspen Springs 3) just West of Pagosa Springs as the ideal combination of proximity to tourist attractions to drive occupancy, good food, many mountain biking options, a mild climate with quick access to a variety of big/snowy mountains, and driveable for a long-weekend. However, you have to deal with a high fire risk and lack of property insurance options. Take a look at https://co-pub.coloradoforestatlas.org/! I could only find commercial coverage through https://www.coloradofairplan.com/ with a 1,600 USD/year premium.

On April 22nd 2021 I closed on an acre on the side of a hill for 12,500 USD through one of my Colorado business entities. The view was fantastic, I had privacy, and there were almost no rules about what I could or could not do with the lot. I knew the area, had looked at satellite imagery, studied topo maps but had purchased sight-unseen … so I hired a drone operator for an aerial survey to figure out where to site the structures. Everything from the red pickup truck to the flat bit on the right side of the image was in play: drawing Fortunately, my neighbor cleaned up their property since this photo.

Finding the House

Over the summer and fall of 2021 I went through the list of manufactured home producers registered to sell their products in the state of Colorado. After many unresponsive sellers proximate to my raw land, I did get a response and reasonable timeline for delivery from Custom Container Living. What I loved about Custom Container Living was the upfront ballbark pricing and online designs I could pick from. For my budget, space needs, and delivery constraints I decided on: https://www.customcontainerliving.com/residential/the-double-duo/.

Planning and Excavation

Alright I had the lot and I had the house vision, now for the exceedingly tedious work: understanding the local regulations - where I could build on the lot and the paperwork I needed to complete. Reading through Archuleta County’s Modular building permit in 2022 wasn’t too painful, even without the meteoric rise of consumer-grade LLMs. The pieces I needed according to the information packet:

  1. Complete Building Permit Application (Sign and date) - easy, just filling out some contact details
  2. 11X17 Proposed Site Plan by Colorado Licensed Surveyor - spend a few months and a few grand with an engineering firm
  3. (2) Sets of Plans, see Plans & Specifications and Plan Requirements Packet - they want paper https://theplanprinter.com/
  4. Access Approval & Right of Way Permits
    1. Get and fill in the right paperwork https://www.archuletacounty.gov/county-government/public-works/county-engineer/right-of-way-permits/
    2. Pay the fee to build a driveway and bring in utilities
    3. Do the actual construction - horizontal bore under the road to bring in electrical and form a driveway over a metal culvert
    4. Get the final inspection
  5. Sanitation (Archuleta County Water Quality approved permit if applicable)
    1. First you need to design the septic system with an engineering firm like Davis Engineering.
    2. Get a permit to do the construction with an excavation team like Pagosa Landworks.
    3. Once the septic system is electrified with a warning alarm then you can get the final review.
  6. Pagosa Fire Protection District Receipt - pay them at https://www.pagosafire.org/impact-fee-schedule
  7. Proof of Ownership - already have this from closing
  8. Letter of Approval from your Architectural Control Committee, HOA or POA - N/A for Aspen Springs, they only do dirt road upkeep
  9. Wetland permit if required
  10. Aviation easement if required
  11. Pay Permit Fee (cash or check only)

Pagosa Landworks took massive quantities of material out of the side of the hill and we did some extremely creative things with Davis Engineering. Engineering designs, permits, excavation, and septic construction bill: 108,471 USD. You could probably half that figure on a flat lot.

Gambling on Water

At this point in the project I became much more adverse to doing novel or creative ways of construction. Previously I had been planning on constructing a rain water collection system with a massive underground cistern. But after some confident words from DAK Drilling and Well Services, I proceeded with the common pattern (in the area) of drilling a well. The San Juan River basin is already overtapped and will continue to recede over the coming years. https://www.usgs.gov/news/state-news-release/groundwater-flow-colorado-river-may-decline-third-over-next-30-years I think I’ll be able to get 5-10 good years out of it and another 5-10 mediocre years out of the well with the very large preassure tank I had put in. This gives me some lead time to put in a proper cistern system in the future. The only legal way I can use the water coming out of this well is for inside domestic use (showering, drinking, washing) before putting it back into the ground through my septic system.

Just to drill the well to ~500ft was 52,050 USD. They make you sign a contract saying they may never hit water. A flat lot would probably take 25-50% off the drilling price.

Total bill to get potable water on the property: 120,078 USD. I still think this was way better than having water delivered like some of the neighbors.

Bring the electricity

By comparison, electricity was far more straightforward than water. The power pole was across the dirt road and we had decided to site the house on the lot as close to the road as possible to minimize the cost of the driveway, the slope of the driveway (there are code maximums), and the cost of bringing in electricity to the lot disconnect.

Alpine Excavation horizontally bored under Echo Ln to the power pole on the opposite side of the dirt road and fed conduit through the hole. This was significantly less costly and complex that cutting into the dirt road. JBX Electric put in the main lot power pedestal disconnect Think something like: https://www.youtube.com/watch?v=0yc7c_axEy8 , did some additional internal wiring fixes once the house was delivered, and setup the electrical lines for the septic and wellhouse.

Total electrification cost: 15,289 USD.

Foundation

This is the most critical part of any building project and the part I outsourced to HYS Cosntruction. There is absolutely no way you can be effective remote and with no general contracting experience. The plans from Custom Container Living were missing some crucial details and most construction workers are wholly unfamiliar with the modular construction style we were attempting. Hiver was absolutely amazing to work with! The traveling crew took a coarsely excavated lot in February 2025: drawing

To a completed foundation with welding embed plates, from my friend Andrew’s shop, in March 2025: drawing

They got the wellhouse on a foundation and a safety retaining wall behind the structure as well. They took care of the remaining electrical, water, and sewer trenching.

The Rental

This is what it looks like finished: drawing Fire resistant metal roof and siding, defensible space with all the shale exposed, and a South facing driveway to keep the snow off. Having a Type II: Noncombustible structure in this area significantly eased the property insurance premium.

drawing I am exceedingly happy with the Southwest decor we found at Camino Real Imports! I always fantasized about a cozy home in the desert Southwest and stumbled into it with the right siting and accents.

Find us on Google Maps: https://maps.app.goo.gl/7JPjsvZTCWi26gxH9

Chronology

  • March 31, 2021: The “Contract to Buy and Sell Real Estate” for the raw land was executed.
  • April 22, 2021: This was the scheduled date for both closing and the transfer of possession for the property.
  • January 5–6, 2022: Submitted the initial “On-site Wastewater Treatment System” (OWTS) permit application and paid the $1,023 fee.
  • February 14, 2022: Initiated contact with Luke McCauley (Pagosa Landworks) regarding excavation and site preparation.
  • April 6, 2022: Paid a deposit to Davis Engineering for a “Proposed Site Plan” (PSP), topographic survey, and septic system design.
  • April 25, 2022: Davis Engineering conducted the topographic survey, which revealed steep slopes (30–40% grade) that required additional geological review.
  • July 5, 2022: Began detailed discussions with Robert Wagoner at Custom Container Living regarding the “Double Duo” 2-bedroom modular home.
  • September 21, 2022: Trautner Geotech issued a proposal for the required geotechnical engineering and slope stability study.
  • December 9, 2022: The final “Limited Geotechnical Engineering Study” was issued, providing the “go-ahead” for construction with specific foundation requirements.
  • December 22, 2022: La Plata Electric Association (LPEA) issued the construction invoice for new electric service (Work Order #20221126).
  • May 25, 2023: Davis Engineering completed the preliminary driveway and building pad design.
  • November 9, 2023: The final driveway and building pad design was completed.
  • February 14, 2024: LPEA crews completed the installation of the meter pedestal on pole 8985.
  • February 28, 2024: The Archuleta County Water Quality Department authorized the start of OWTS (septic) construction.
  • March 25, 2024: Decided to pivot the water source from a cistern to a drilled well.
  • July 15, 2024: A construction loan agreement for the project was finalized with REDACTED.
  • Summer-Fall 2024: Lost the rest of the building season due to the inability to find reliable concrete workers in the local area.
  • February 18, 2025: Signed a statement of work for the final foundation (slab, piers, and footers) and site preparation with Hiver Salley (HYS Construction).
  • April 1, 2025: A second Electric Facilities Agreement was signed with LPEA for an additional 200A meter socket (Work Order #20250633). They had reallocated the previous one to a different customer.
  • April 15, 2025: Final coordination and payments were made to DAK Drilling for the well pump and water filtration system.
  • April 23, 2025: Delivery of the structure by Custom Container Living.
  • May-July, 2025: Final inspections for right of way required updates to the driveway culvert. Final stamp from the state of Colorado held up due to missing paperwork from Custom Container Living.
  • July 31, 2025: Certificate of Occupancy received from Archuleta County.
  • August 8, 2025: Signed a “Vacation Rental Services Agreement” with Vacasa to manage the property.
  • August-September, 2025: Made several trips to the property to decorate, furnish, and prep to Vacasa’s specifications.
///