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Updated about 3 years ago on . Most recent reply

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Janea L.
  • New to Real Estate
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Tiny Homes rental properties

Janea L.
  • New to Real Estate
Posted

I don't know much about the tiny homes market. I was reading the Bigger Pockets Beginner's Guide to real estate investing about investment vehicles. Tiny Homes weren't mentioned. I'm curious about your thoughts on Tiny Homes as a Real Estate Investment opportunity. Are there any good resources you would recommend to get started?

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Michael Baum
#2 Short-Term & Vacation Rental Discussions Contributor
  • Olympia, WA
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Michael Baum
#2 Short-Term & Vacation Rental Discussions Contributor
  • Olympia, WA
Replied
Quote from @Janea L.:
Quote from @Michael Baum:

Hey @Janea L., tiny homes aren't considered real property (unless they are on a foundation) so investing in them can be problematic.

You can't use a mortgage for a tiny home, only for the property. So you would have to use cash to build out the property to support the tiny home.

Oh okay that's good to know. I didn't realize that mortgage pertained to the property. I'm assuming based on the state a dual property tax would be required including the tiny home. Thanks for this info. 

I just want to clarify to make sure you see what I am saying. You should be able to finance the land. You might be able to include the improvements that will be required like sewer/septic, water and electrical stubs for the buildings.

It's the tiny home itself that won't be covered by the mortgage.

Now like @Rachel H. said, you can check with the manufacturers to see what they offer for financing if you don't have the cashola.

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