An as-told-to essay was written based on a conversation with a rental unit owner. It has been edited to make it clearer.
I bought my first house when I was just 24 years old. I don't think I'll ever buy another one, but I own 29 rental units.
I didn't have a very high income when I bought my first house and ended my career with a salary of $57,000 a year.
I used real estate to make money since I rented out part of my house to a roommate.
The tiny house in my yard is paid for by the mortgage on the home we live in.
I rented out a portion of my first home. After buying a second home, I rented it out for a long time. I used to rent out a room in my second home on the platform.
Sharing my space became too much for me. I had to give up a lot of my privacy in order to have it.
Tiny houses were the best way for me to make money without sacrificing my space.
There is a lot of rental space back there.
The first tiny house I ever owned was a converted garage. Make sure that you are in a zone where you can have a rental in your yard. You can check that at your city's website.
It took a lot of time and money to get my garage ready. Buying finished tiny houses was a better option for me.
I purchased a pre-built, fully finished tiny house from a local place called Creative Living Solutions for about $89,000, which included delivery and tie-down fees, which secure the tiny house in place.
It wasn't difficult at all. I was able to see the different styles of the tiny houses. You can find similar stores in rural areas if you have enough space.
About $18,000 was put down by me. Many people could do it if they saved for a few years like I did.
I took out an RV loan for the rest. It is difficult to get an RV loan. Your interest rate is determined by your qualifications. We have an interest rate of seven percent.
We pay property taxes on the whole property, even though it is on the back end of a built house. RV tax is similar to car tax when buying a vehicle. The average amount for utilities is $125.
The tiny house had everything from a fridge to a microwave. Plumbing and electrical were the only tasks we had to do. We connected the tiny home to the RV hookups in the back of our lot. The house was covered with cinder blocks and wheels. An expansive deck was added as well. We took from our savings all of the extra money.
Within 10 days, the tiny house was ready for rent.
We rent it for a short period of time and it stays booked for most of the time. Booking.com and VRBO are used by most of our renters.
Some people don't want to change their prices because they could lose tenants. Based on demand, my tiny house can go up to $200 a night. I used an unofficial formula to come up with my pricing.
The price will be dropped if it's not booked in 5 days. I'll reduce the price by another $10 if it's not booked the next day.
You get bumped up in the search when you change the price. More people will see your listing if you have a low price.
Every so often, changing the title of your rental causes it to go up in the rankings. We like to call our tiny house "The Cottage" but sometimes we will change how we describe the location.
Cute furniture makes a difference. Most of our furniture comes from secondhand stores. If you go to a few different stores over a 5 day period, you'll find all you need for a lot less.
I prefer to stay neutral on large pieces. Throw pillows and things that are easy to replace as trends change are a great way to liven it up. People love plants.
The management company that I use handles the cleaning for me. The company is able to help you find furniture. It is the only way to make my rental units profitable.
It was like a part-time job for me and my fiancée before we hired the company. We're going to be almost completely hands-off now. I don't have to worry about guests or anything else. I might spend two hours a month on the rentals to make sure the invoices are paid.
We pay 30% in management fees. The management fee is based on the booking totals and the cleaning fee is based on the number of separate bookings. It can change a lot.
I recommend using a management company that specializes in short-term rentals instead of my mom working at the management company I use. It's not cheap, but it's worth it because I don't have to do any real work.
The tiny house makes a lot of money. Once I pay the management fees, my mortgage, and the tiny house mortgage, I'm broke. I get to live in my house mortgage-free, which is huge, and it makes me feel powerful because I don't have to worry about paying my mortgage.
Two more tiny houses have been bought by me.
There is a big barrier to entry into real estate. If you buy a home for the first time, the government will give you incentives. You can put as little as 3% or 5% down.
3% of a home's price is about $15,000. The closing costs need to be taken into account. You need to have 25 grand to start.
It's possible to make home-buying more affordable by partnering with other people. I have partnerships with my family. I've gone on houses so we all benefit from it.
You can rent it to a roommate, turn it into anAirbnb, or rent out lawn space to people who want to park their RV. Take the money you spent on rent and use it to buy a house.
I can't emphasize enough the power that comes with eliminating your mortgage payment or rent. I can use that money to purchase more properties.
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