Any issues with tiny homes?

Question

Checking on whether any investors have found issues with any tiny houses they've used as STRs (i.e., leaks, structural integrity). Also, did you have a contractor build it or build it yourself? (I love the ones I've seen on the Home Depot website but I wonder about their feasibility.) Thanks in advance!!

Luke Carl · Answer

Problem for me is you can't finance them.

It's not a real house, can't get a real loan, It's not for me.

Now I do have a 600 sq ft cabin that crushes it. It's tiny. But it's not what you'd see on TV as a "tiny home" because it's a real house built on a real crawl space and therefore I got a real loan.

Michael Baum · Answer

Hey @Tayo Black, I am with the others. You can take a tiny home on a trailer and build a 600sqft cabin for the same price, or at least close.

Anything that isn't sitting on a foundation isn't real property and has no value when it comes to the land. If you can move it easily to another location, then zero value there.

I think tiny homes (trailers) do appeal to some folks, but frankly we cater to families and that leaves out that sort of "investment". Give me a house, cabin, A Frame etc any day of the week.

Account Closed · Answer

@Tayo Black They go down in value over time like any other trailer. They don't appreciate like a stick built property will. Now I will answer your question, the quality will depend on the builder....

Ryan Moyer · Answer

Lots of people do well with them. None of us here in this forum have tried them so we can't really offer advice or any pitfalls in the process because none of us have gone through it. Doesn't mean it's a bad idea though, there are a lot of people it works GREAT for!

Leslie Anne Morris · Answer

They're tiny! LOL

Mike Shemp · Answer

We have a home that is 608 square feet. It's not tiny, but cozy for sure and it performs very well.

Mike

Bruce Woodruff · Answer

As @Leslie Anne Morris said - 'they're tiny'.....Most people I know would not be interested other than the novelty of it. I think you'd be cutting down your target market by, say, 50% - 75%, or more. Not a good business model.......

Brett Deas · Answer

Fincnancing is hard, but I have found that many tiny home builders offer some sort of financing now, and also I would suggest you present it to local banks and they may be able to help you out and get creative. Other than that my tiny home STR's do really well from a COC view.

John Underwood · Answer

I only buy what I would want to use on vacation.

No tiny houses for me. Last place was 4400 sq feet!

Any issues with tiny homes?

Any issues with tiny homes?

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