Tiny homes have taken the real estate world by storm! Buyers love them for the minimalist lifestyle and aesthetic and low price. Investors love them for the high demand and creative investing opportunities.
A tiny home is usually anything smaller than about 600 square feet. Considering that the average American home is over 2,000 square feet, this is pretty tiny indeed! Other features are that they are often made with environmentally conscious materials and they may be portable, built on wheels or trailers.
The tiny home movement has broad market appeal. Let’s look at some of the ways to capitalize on tiny homes.
Since tiny homes are not equivalent to regular-sized homes, you will not find them listed in the traditional places like MLS (Multiple Listing Service) databases on popular real estate websites. Also, note that you are only purchasing the tiny home— typically there is no land for sale with it. You’ll need a place to build or park the tiny home.
Here are some ways to find tiny homes for purchase:
If you have construction experience, you can also consider building your own tiny home! Many people might take this on as a hobby, but it’s an involved process that is best left to those with experience and skills. Certainly, leverage your power team members where you can to maximize your goals and ROI.
Since tiny homes are, well, tiny, furnishing can be tricky. Furnishings need to fit in the space, look good, and provide utility—the perfect challenge for someone who is unique and creative! Here are some tips on how to furnish tiny homes:
Since tiny homes do not come with land, finding somewhere to put it can be a real challenge. The most obvious solution is to buy land. Some municipalities or regions also have laws about where you are allowed to put them, so it’s important to do some research to make sure you are finding a legal place to put a tiny home. Here are some options to consider prior to getting your tiny home.
Unlike traditional real estate where the land appreciates over time, a tiny home does not have that. So, someone who wants to make a profit from the sale of their home needs to add value in another way. Here are some ideas:
Tiny homes have gained a lot of popularity in recent years and they present a fun and unique way for investors to make money. Because of the unique features of tiny homes, it’s important to carefully consider both the limitations and opportunities. Then, make a plan, get started, and enjoy the tiny home!
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