986: Are Tiny Homes a Good Investment? How a $50,000 Home Pencils Out

BiggerPockets Real Estate Podcast

BiggerPockets

Education, Business, Investing

4.8 • 16.5K Ratings

🗓️ 10 July 2024

⏱️ 36 minutes

🔗️ Recording | iTunes | RSS

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Summary

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 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected]. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Rent is super expensive right now. Housing is at its lowest affordability point in 40 years and one
0:08.5	estimate showed that about half of Americans have struggled to pay their mortgage or rent at some point in the last year.
0:16.4	This points to a bigger issue in the housing market that you're probably aware of if you listen to this
0:20.6	podcast, but it's that supply of affordable and reasonably priced housing
0:25.2	is just not available. But today we're talking about one potential solution to this issue that
0:32.0	investors should absolutely take note of its tiny homes.
0:37.0	Hey everyone it's Dave Meyer welcome to the BiggerPockets real estate
0:45.1	podcast and I'm Henry Washington and today we're talking to Stephen Harrow all
0:49.9	about why he thinks tiny homes are a strong investment in this current market.
0:54.7	Stephen is going to break down costs and trade-offs between traditional stick-built homes
0:59.4	versus tiny homes. We'll also talk about some of the myths around tiny homes and Tiny Homes,
1:04.0	and living in Tiny Homes, and what investors should know
1:07.6	before pursuing Tiny Homes as an investment.
1:10.4	I love the idea of Tiny Homes.
1:11.8	I think it's such a cool way for people to get into
1:14.8	investing at a really affordable price point and be able to provide affordable
1:20.8	housing during a time where that is really hard for tenants to come by.
1:25.0	So let's jump into our conversation with Steve.
1:27.6	Stephen, welcome to the podcast.
1:29.0	Thanks for joining us.
1:30.0	Thank you for having me.
1:31.0	I really appreciate it.
	...

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