Are tiny homes a good investment? For just $50,000, you can get a brand new tiny home investment—not even fifteen percent of the average single-family home price in the United States. Even better? These tiny investment properties can bring in over $15,000 per year in rent, making your payoff period minuscule compared to a standard real estate investment. To learn more, we brought Steven Harrell, tiny home builder and investor, on the show to walk through all the numbers and how investors can cash in big on these tiny homes.
Steven has seen the tiny home industry shift from off-the-grid, fringe mini homes in the woods to now a mainstream necessity as more Americans struggle to pay the sky-high cost of rent or a mortgage on standard homes. With affordability at a forty-year low, Americans need cheaper housing options, and tiny homes might be the perfect answer.
We discuss the costs of tiny homes, how much they rent for, finding and buying land to put them on, insurance, financing, and how beginners can get started on this investment at a very attractive price point. Want tiny houses with big profits? This episode is for you!
In This Episode We Cover
How much does a tiny home actually cost to build, and how much it’ll rent for
Tiny home appreciation and whether these small investments are for cash flow only
How to find and buy the land for your next tiny home, plus what you MUST look for
The average insurance cost for a tiny home (it’ll surprise you)
Why the average tiny home tenant might not be who you think it is
Exactly what Steven would do now to get started investing in tiny homes
And So Much More!
(00:00) Intro
(01:27) Foreclosed On & Finding “Tiny Homes”
(05:39) Average Cost and Size
(08:12) Do They Appreciate?
(10:02) How to Invest in Tiny Homes
(15:35) It’s THAT Cheap!?
(18:17) Insurance for Tiny Homes
(20:18) Tiny Home Tenants
(22:22) How to Get Started
(26:28) Would We Buy Tiny Homes?
Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-986
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