1 ex-firefighter, 4 shipping containers, $100k per year in rent

When Ryan Duffy quit his job as a firefighter to flip short-term rentals around the Ozarks in Arkansas and Missouri, he eventually got bored updating cookie-cutter rentals and wanted a bigger challenge. So when Airbnb put out a call for unique stays, he decided to try building a home out of four shipping containers. How hard could it be? Here’s a blow-by-blow, plus a peek at what else his company, OMG Developers, has in the works, from 30-foot tower houses to a home tucked in an underground cave.

Q: What inspired you to start building unusual properties rather than regular rentals? “Around 2022, when Airbnb rolled out their unique categories, I was fascinated and tried to figure out something I could build. Since lumber prices were through the roof, shipping containers came to mind because they cost $8,000 apiece new. All in, we spent $300,000 and six months putting it together.”

Q: What was the biggest challenge? “Financing. I took my plans to numerous banks who thought it was too risky without comps. I ended up arranging a shared equity agreement with two partners where I own 25%. Another challenge is that people think a container house goes up fast and cheap, but once you’ve got the steel shell, you still need to insulate it, build interior walls, run plumbing and electrical; you’re effectively framing the house twice. Steel also holds and loses heat way faster than wood: Our electric bill on 1,300 square feet with a heated pool and hot tub is $350 a month, compared to just $200 for the 3,500-square-foot regular house we renovated across the street. It also turned out that in high wind, the metal railing on the roof would resonate like a boat motor. Thankfully, we figured out an easy fix, using zip ties to hold the railings together.”

Q: What advice would you give other investors thinking about a unique build? “It’s not cheaper, it’s not easier, but I’d honestly just get bored building the same cookie-cutter McMansion over and over again. Be patient, and be flexible with your budget. If you hear a number, add two or three months to the timeline and at least 10% to 20% to the budget. But we’ve almost always gotten a great return. The container house pulls in over $100k in income per year and is currently listed for $675,000. The real edge, though, is the tax side with cost segregation and forced depreciation. That’s been a game changer for us not to have to write a check to the IRS for $50,000 a year, and being able to pull equity out with a line of credit to fund the next project.”

Q: What properties are next? “We’re finishing three tower houses right now: 30-foot steel structures with two-bedroom cabins on top and floor-to-ceiling windows overlooking the lake. We’ve also got an octagon-shaped house designed to look like one of those geodesic domes, with smart glass that goes from clear to opaque with a switch. And we just bought an 85-acre property outside the Buffalo National River in Arkansas with a house already built into the side of a cave. We’re planning to turn that into an off-grid luxury experience with a spa and grotto pool.”