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Two 23-Year-Olds Built a Wellness Cabin
Real_estate

Two 23-Year-Olds Built a Wellness Cabin

Business Insider6d ago
3 min read
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Key Facts

  • ✓ Rajan Chidambaram and Renzo Sanio took out a $300,000 construction loan.
  • ✓ The project faced a three-month delay due to tariffs on windows imported from Poland.
  • ✓ Total costs reached approximately $350,000, including land and furnishings.
  • ✓ The cabin is currently fully booked for December, January, and February.

In This Article

  1. Quick Summary
  2. The Project and Initial Investment
  3. Pivoting to Wellness
  4. Construction Hurdles and Delays
  5. Budget and Current Status

Quick Summary#

Recent college graduates Rajan Chidambaram and Renzo Sanio undertook a high-risk real estate project in Front Royal, Virginia, securing a $300,000 construction loan to build a wellness retreat. The project faced immediate hurdles, including a three-month delay caused by tariffs on windows imported from Poland and unexpected maintenance issues such as frozen pipes.

Despite having no prior development experience, the pair shifted their focus to the wellness market after a video posted by Chidambaram gained viral traction. This pivot led them to increase their budget by $30,000 to include amenities like red light therapy and sustainable materials. The cabin, which cost a total of approximately $350,000 to build and furnish, is currently fully booked for the winter season.

The Project and Initial Investment#

Renzo Sanio and Rajan Chidambaram, both 23 years old, decided to enter the real estate market by building a cabin in rural Virginia, located about 70 miles outside of Washington, DC. Sanio noted that real estate development is widely considered the "riskiest way to play the real estate game," a sentiment they found accurate due to the complexity of dealing with county regulations, local covenants, and building codes.

The duo was not well-capitalized and relied on a $300,000 construction loan to build the cabin after saving money to purchase the property. Sanio described themselves as "just two college students" rather than professional developers, highlighting the steep learning curve they faced. The land purchase cost approximately $37,000.

"We're just two college students who decided to take on a really big project while we were still in school and soon to graduate."

— Renzo Sanio

Pivoting to Wellness#

The business strategy shifted significantly after Chidambaram posted a video discussing wellness that gained massive traction online. The post attracted a large following, including NBA player Kyrie Irving, and convinced the founders that there was high demand for wellness-oriented short-term rentals. Research indicated that by 2030, one-third of travelers would book accommodations based on wellness offerings.

Consequently, the founders decided to "marry wellness with the type of asset that we're building." They expanded their amenity list to include:

  • Hot tub, sauna, and cold plunge
  • Red light therapy
  • Normatec compression sleeves
  • Sustainably sourced woods and non-toxic paints

Chidambaram explained the philosophy: "We have a thesis that this is where society is shifting toward — especially with the rise of AI... People are going to crave real experiences." The space was designed specifically to disconnect guests from technology, featuring no television and curated games.

Construction Hurdles and Delays#

The construction process was plagued by delays and regulatory hurdles. The most significant delay occurred when tariffs slowed the import of windows from Poland. Sanio explained that the project was at a "standstill for about three months" because interior work could not proceed until the building was "dried in" with windows installed.

Operational challenges arose once they began hosting guests. One major incident involved a power outage caused by the county cutting down trees, which froze a pipe connected to the hot tub. Chidambaram recounted the emergency repair:

"Three hours before a guest came, I drove up there and bought a heat gun... I started heating up the spigot, and the water came out."

Additionally, the project required passing multiple inspections, including an air tightness test, adding to the complexity of the build.

Budget and Current Status#

The total cost for the first cabin reached approximately $350,000, which included the land, construction, and a $16,000 expenditure on furniture and fixtures. The founders also signed a $6,000 change order for two additional skylights to maximize natural light, an expense that was not originally budgeted.

Despite the challenges, the retreat is performing well financially. The cabin is currently 100% occupied for December, January, and February. Nightly rates are dynamically priced between $330 and $490, with a goal of averaging $450 per night in 2026. The founders are already planning to build additional cabins on the property.

"Tariffs kind of hurt us. We were at a standstill for about three months."

— Renzo Sanio

"Three hours before a guest came, I drove up there and bought a heat gun."

— Rajan Chidambaram

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