The alternative way of living is peaking peoples interest and right now one of the most popular styles is a Tiny House. What is a tiny house you may ask? A tiny house is technically considered an RV and its also small house, like really small. The usual build is under 350 square feet but has everything a traditional larger home would have. A kitchen, bathroom, living room and sometimes two bedroom or even a office space. In reality what more can you need?
Now I know its considered an RV but it is much more luxurious then just your typical road trip RV. They are built customized to the person living in it. You can basically design the home of your dreams just in a more compact size. Are you an aspiring chef? Great! The tiny house can be build to have a larger kitchen with all the tools you require to pursue the dream of being a chef. Do you want to be a video game developer or an artist? Perfect! You can create a loft or the office work by making a space within the tiny home that showcases your favorite games or paint brushes.
Now that you know what a tiny house is and what they look like… how can you make money out of tiny homes you may ask? There are to main topics in this article that can help you achieve savings or perhaps an additional income.
Lets take a look at Los Angeles for an example. The typical cheap rent you can find for a studio or possibly a one bedroom is around $1,500 not including utilities or anything additional. After one year of renting you would have paid $18,000 dollars to live in that space. That is money that you will never get back and its money that was not invested into your self. Now take a look what a Tiny House can cost: anywhere between $7,000 and $70,000 depending on how big and luxurious it might be.
The average Tiny Home will cost you about $30,000 which is the price of most cars. You can pay for the tiny house in full or finance it and sometimes people even build it themselves. This can mean no more spending $18,000 a year on a place to sleep. So now lets take a look where do you park the tiny house. Los Angeles just passed a law this year 2020 allowing Tiny Houses to be parked in someones back yard and the tiny house being considered an ADU. This way you don’t have to be on the streets or randomly parked at a Walmart parking lot. Currently you can rent someone backyard anywhere between $300-$600 a month in order to live in your tiny house.
Have you noticed the price difference yet? You can rent a apartment for $1,500 or you can rent a parking spot for $600 those numbers already save you $900 a month which will pay off the tiny house in no time! Hopefully the extra $900 can be put towards other investments or be used to purse your passions, maybe you want to open a business or just put it in savings so you can retire early who knows! The possibilities are endless. Plus, don’t forget that you own tiny house, no one else does and at anytime you want to move to a different state or city you can take your home with you.
So now your making $900 a month from living cheaper but what if you do not want to physically live inside a tiny house? That’s not a problem. You can still make money by renting out a space to people who do want to go tiny. If you have property in the Los Angeles area you can rent a parking spot to people and you decide on how much. You don’t have to build anything your self and you can have an extra of up to $600 a month for sharing your backyard. Keep in mind that a tiny house on average is under 350 square feet, some tiny homes can even be 150 square feet so I would imagine that most backyards can accommodate those sizing requirements.
Tiny house living can be beneficial in many ways, maybe it allows you to free up time for things that really matter or just helps you financially in the goals that you have set for yourself. Or maybe your saving on a deposit for a house and you want to speed up the process. Or you are going to college and tuition is breaking the bank. Whatever the case might be for you, you might want to consider tiny house living. When you break it down people don’t need a 8 bedroom mansion in order to live comfortably all a person needs its 350 square feet.
If you would like to do more research about Tiny house living, call your local planning and zoning departments and they should be able to tell you more information about parking your tiny house on land and there are plenty of videos and articles showing you all the different kinds of tiny homes that people have designed.
