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Updated over 1 year ago on . Most recent reply
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Tiny Homes - Produced in China
Hello all,
I've recently been turned onto the BP podcast and forums. I'm in love! All the recent podcasts about the mobile home parks has got me thinking about some cool ideas. I'm curious what you guys think about an idea I'm working on right now.
I have created a decent sized business designing consumer products, getting them produced in China, importing to the US, and selling them online. I did a million dollars in sales last year so it's going pretty well :-D. I am doing a house hack right now in San Diego too (I own a condo and have a tenant-roommate paying half the mortgage).
It got me thinking about how I could marry real estate with my design and production skills. The idea of making prefab tiny homes in China and importing them to the US came to mind. I can produce and import tiny homes for about about $15k. I already found suppliers who can do this. The market for these size of tiny homes is going for about $30k-$50k each. That's a pretty nice margin! What do you guys think about this?
The problems I don't know how to fix right now are getting a certified architect to help me design them. I have an engineering degree so I can do CAD and 3D modeling. I have a decent amount of capital too so finding money isn't an issue. I just need someone to help with getting these designs more legit. A professional architect maybe? The other big issue is finding land that is zoned for this type of home. There are several ways I can do it, but it is a little tricky. I need to figure this out or find someone who is good with zoning issues in SoCal.
That's my idea right now. Please comment with suggestions and insight if you can. I'd love to partner with someone who can help too!
Thanks!
~Andrew
Most Popular Reply
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Hi @Andrew Erickson, Ive been working on the tiny home issue in California for 2 years. There may be a few misconceptions in your model that I think I can explain.
First, the State of California has stepped into this space, big time, with laws and definitions of what is a tiny home. They issued an official memo that define a legal tiny home and says that anyone who sells a tiny home that does not meet the State standards can be prosecuted. Basically, their standards align with RVIA standards. They are very specific design standards. If you think about it, an architect designs stationary buildings. Tiny homes have to be able to travel down the road at 65 MPH. That's way beyond architectural or building standards. Our State doesnt want these things exploding,catching on fire, water or waste to come shooting out, or pieces to fall off as it travels.
Second, what is the difference between a tiny home and an RV? RVs are built out of cheap & light materials like plastic & aluminum. RVs are built to be lived in short term, like for a week or weekend here and there. Tiny homes are built out of wood, glass, tiles, granite, porcelain and the materials stick-built homes use. They are built to be lived in everyday, day in and day out, for at least 30 years.
Third, how does a person manufacture to RVIA standards, so that their tiny homes can be legally sold in California? RVIA certification is both granted to individual tiny homes and to the factory where they are built. That is, part of the certification process is that the RVIA organization goes to the factory a few times per year and inspects the manufacturing process. This makes sense because, in order to certify a tiny home they cannot go in and rip the walls apart. They have to do the inspections while they are being manufactured. Once the factory is certified, and the individual tiny homes are inspected, they are allowed to bear the RVIA insignia and be sold in California (and other states with this standard).