There has been rising popularity in tiny homes in the last decade or so and there are so many reasons why they have become popular. Real estate is always a good idea so if you’re thinking about making a great investment then consider investing in tiny homes. There are so many ways you can use tiny homes to make a great return so keep reading to find out how.
One of the reasons tiny homes have become popular is the ease of building one compared to building a full-sized home. A tiny home uses fewer materials, time and physical labor to create so think about taking your investment and putting it into a tiny home company. Look for local companies who have started building tiny homes and talk to them about investing in their business.
With the growing tiny home market, you are sure to make a great return if you invest in a reputable company with tiny home experience. Tiny homes have also become popular for residential properties and they are often marketed as a fun bonus like a “she shed” (the femme version of a man cave) or a granny flat (a place where the parents of the homeowner can stay while visiting) so they are becoming more than just a trend.
Camping has become a thing of the past now that the term “glamping” has come into our vocabulary so why not use some tiny homes to create your own campsite. If you have a piece of property that requires too many extra permits for a traditional commercial property then look into what it will take to create a tiny home campground. This way you will be able to get multiple incomes from one piece of property while keeping your building budget small.
Keep in mind you will need to follow whatever guidelines and laws the area has for these types of homes. This may require you to do extra paperwork to file the tiny homes as RVs or mobile homes as many places don’t have specific permits for tiny homes. Some areas also require you to provide things like waste removal, running water, or other utilities before you can open them up to guests.
Building a home is much more expensive than demolishing the home and fixing up the land. If you are looking to do a quick tiny home flip then look for properties that have great land but terrible housing so you can flip the land instead. People have started to yearn for more outdoor space in the last few years and a tiny home with a large yard is incredibly appealing to some long-term renters.
As previously mentioned, you will need to see what type of permit you need and the requirements for allowing the tiny home to be on the property. Some cities don’t have any specific requirements in place but that doesn’t necessarily mean that it’s legal. Ask local real estate legal experts on what the legal requirements are for a dwelling to exist and they might be able to help you figure out what to consider your tiny home when it comes to filing paperwork for it.
If you have ever thought about building a rental tiny home on your property then now is a great time to do it. Comparing the cost of clearing out the land, building the home, and maintaining it for a full-sized home against a tiny home makes it obvious which one is the better choice. A tiny home will take much less time, money, and work to start up and you can usually put it on your property with no issues or extra permits.
Tiny homes on Airbnb are currently renting for around $80- $150 per night and that’s a nice chunk of income for an initial investment of around $30,000- $60,000 for a good quality tiny home. It will likely only take you a year or so to earn the money back for your investment and then every rental after that will be pure profit. One major benefit is that you will own the tiny home outright so you won’t have any extra payments.
We’ve talked about how you might need to go through some red tape and paperwork depending on where you want to place your tiny home so why not skip all of that and start building in a place that is already zoned for them. Mobile home parks are a great place to look into buying plots of land and replace the existing trailers with tiny homes that have more modern amenities. If you have the funds, you could even buy the whole park and transform it over time with the money you are earning from the regular rental fees.
There are quite a few ways you can invest in tiny homes and end up with a great-looking return on your investment. Tiny homes are the wave of the future and they have only become more and more popular over the years. Tiny home living isn't going anywhere so embracing it and making some great investments is the best way to go.