Buying Small Homes on Small Lots as LTR - Thoughts?

[Rick Albert]

Hello All,

I'm considering buying a small home on a small lot in LA. Here are my thoughts:

1. Buy at a discount given the lack of building potential and can always pass that discount along when I sell.

2. There is still a high demand for SFRs.

3. Tenants may not care as much, therefore there may not be a big discount for the lack of space. 

I'm curious if anyone else has gone down this path and what their experience has been.

Thanks!

[Bruce Woodruff]

I've built a small-ish house so have a small knowledge of that community and mindset. There is a niche group of small home lovers and advocates...I don't know if they are still in vogue as they use to be? But I would think it could/would certainly work out if the numbers look good.

And yeah, I don't think you'd have to discount the space due to less SF, or not much anyway. Heck, some people might even pay more for the 'cool factor' of living in a 'small home'....I'd give it a go since you're a veteran of this RE stuff. Make it look super 'cute' and charge double!