Tiny Home Development

[Pete Harper]

My wife and I have been investigating developing a tiny home village in Central Texas.  We are looking at a 15 acre parcel of land with an existing mobile home.  The site is in the unincorporated county.  No zoning issues.  The only permit requirement is for sewage treatment.  The site already has power and city water.  We would put in a shared septic system, gravel roads, gravel pad, stub out water and electrical connections.  Nothing too fancy.

 Has anyone done a similar development?  I'm looking for estimates on development costs so I can do a rough financial analysis.  I've looked at similar developments in the county and they are getting $400/month sight rental.  We have a large demand for affordable housing.  I've watched a similar development fill up within the last year.  

Thanks, Pete

[Jake Thorpe]

Hey Pete.. I work with a company specializing in building Tiny Homes. How are along are you in your plan and are you working with a builder yet? 

Thanks

-Jake

[Peter Harper]

Quote from @Jake Thorpe:

Hey Pete.. I work with a company specializing in building Tiny Homes. How are along are you in your plan and are you working with a builder yet? 

Thanks

-Jake

We are still investigating the idea. I'd like to put together a budget for development. I'd like to talk to others who have developed communities. 

[Mike Reynolds]

Quote from @Pete Harper:

My wife and I have been investigating developing a tiny home village in Central Texas.  We are looking at a 15 acre parcel of land with an existing mobile home.  The site is in the unincorporated county.  No zoning issues.  The only permit requirement is for sewage treatment.  The site already has power and city water.  We would put in a shared septic system, gravel roads, gravel pad, stub out water and electrical connections.  Nothing too fancy.

 Has anyone done a similar development?  I'm looking for estimates on development costs so I can do a rough financial analysis.  I've looked at similar developments in the county and they are getting $400/month sight rental.  We have a large demand for affordable housing.  I've watched a similar development fill up within the last year.  

Thanks, Pete

 I would go to that development that filled up and and ask a lot of questions. I’m working in central Texas right now. If I can help in any way, let me know. 

[Ed O.]

@Pete Harper

Hey, I was curious to see if you made any progress on your tiny home project. I've been doing some research of my own. It seems like a rural setting is about the only place a person could place one. 

Seems like every politician screams from the top of every mountain top "WE WANT AFFORDABLE HOUSING"  and then declare, NO! We won't have such housing in our city! 

I'm trying to wrap my head around the water and sewer setup for a tiny home community. Do you have any information on how many homes a well and larger septic can handle and costs? That's my biggest concern. The communities I've seen have had rural style asphalt roads and look pretty straightforward.

[Pete Harper]

Ed, The deal fell through on the land we were going to purchase.  The idea is on the back-burner for now.

We have two other in-town properties with enough land for 4-6 tiny homes each.  There is no zoning so this would be perfect for in-fill project.  In both cases I would connect to city sewer and water.  I wouldn't want to own the units.  Tiny homes depreciate in value similar to mobile homes.  Business plan would be to rent lots for $400-500/month, tenants pay all utilities.  When I get a chance I will investigate further.  I still haven't figured out lot development costs.

[Graham Rider]

@Pete Harper out of curiosity have you looked at modular home products that sit on a foundation? They avoid the depreciation seen with a tiny home as you describe or that of a HUD-type product and are generally quite well made. In my market, you see a range but the construction cost for the home itself is roughly $100/sqft to $140/sqft for the home alone. They also finance like a normal stick-built home.

If you have considered that option curious as to why you decided against it. 

[Pete Harper]

Graham,  I looked into modular.  There are not any local manufacturers.  I found information S2A modular however they don't look reputable.  Can you suggest someone?

[Graham Rider]

Quote from @Pete Harper:

Graham,  I looked into modular.  There are not any local manufacturers.  I found information S2A modular however they don't look reputable.  Can you suggest someone?

@Pete Harper searching "Modular Home Manufactures near Streetman TX" I got a couple of results. The ones I recognize or have talked to in the past are Champion Homes and Pratt Homes.

For financing, if you want to avoid problems for potential buyers or for yourself when you refinance make sure they are "Modular" and sitting on a proper foundation. They are super customizable and if you shop around you should figure out what the general cost per sqft is in your market is. Get a couple of quotes because they can be pretty wide apart. Long term I anticipate construction costs will generally soften as the high-rate environment continues and stifles development. Good luck!