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All Forum Posts by: Kandi Sterling

Kandi Sterling has started 2 posts and replied 7 times.

These units do not need a mortgage. They are classed as RVs and we have financing for them. You are right, these don't attract families, although there is a very successful group called Gateway Vacation Home Rentals that are featured on VRBO and other sites. They group these units so that families can stay in several units around a campfire and they have several locations across the country. 

This is NOT an investment for the typical, conservative investor. It is for the investor who is in tune with the new type of traveler and who wants to be at the forefront of a new wave of high ROI returns.

There are several of these tiny home villages around the county and they are doing very well. They are not aiming at full-time residents. They are aiming at the new generation of vacationers. And the ROI is high. You can buy about 4 of these units for the cost of a single-family home in most parts of the country. And the maintenance on all 4, including utilities is much less.

Quote from @Jon Martin:
Quote from @Andrew Steffens:

Not sure as a traveler I would stay in one or not, but I am sure there is a market for it.  To me the money is in larger groups.

Agreed. I've also noticed that large groups/properties book well into the future more often than smaller properties. Which makes sense intuitively.  After comparing the performance I don't think I could ever go back to anything under 4 bedrooms. 

I can also count on 1 hand the number of tiny home designs I've seen that don't look like repurposed tough sheds and/or have awkward dimensions. The only one that comes to mind as being somewhat appealing is the one that Elon Musk is supposedly an investor in. 

Thank you so much for pointing out both of those issues. The larger homes do rent well and are frequently booked further out because they appeal to a group traveling together and they do rent for much more per day. It is a different market. But that doesn't mean that in the long run the small, unique units don't rent well. While it is true that they don't bring in as much per night, they are a higher ROI because you invest so little and their maintenance and initial costs are so low.

Second, I love your observation that they just don't LOOK appealing. The ones we build are built on heavy-duty trailers with engineered plans and steel frames. They will outlast most stick-built dwellings with a fraction of the maintenance and have a lifetime guarantee to back them up. The interior is finished with pine paneling to give a warm and inviting feeling of cozy comfort. 

Quote from @Collin Hays:

I own the world's largest tiny home.  It's over 3500 square feet, but I've run out of room for my stuff.


 Yes, tiny homes can be challenging to live in full-time. We aren't building them to live in full-time. Ours are much cheaper per sq ft because they are designed to be used in the short-term rental market. 

Thank you everyone for the feedback. And I agree that it is a niche market segment and that they draw a different clientele. However, it can be a lucrative one. THOWS can be useful to the homeowner who has a little extra land and wants a new income. They are extremely attractive to the younger generations of travelers who want an experience when they travel. They are also appealing because they are eco-friendly, again appealing to the younger generations of travelers. 

And while they are not high-income, they have a high ROI. They can be purchased fully finished for around $85,000 and rent consistently (at least along the East Coast) for $190 a night with strong bookings year round. That means that they are completely paid for in about 3 years.

Tiny home villages can be very attractive and produce a good income. Mr. Baum is correct that they have limited mass market appeal, but they do appeal to the younger, growing traveler so the market is only going to get larger. 

Is anyone interested in discussing the use of THOWs as investment properties? I would love to talk to you.

Imagine a unique, cozy, and eco-friendly Airbnb listing that stands out from the crowd. Tiny homes on wheels offer just that. This innovative concept combines the charm of a traditional home with the flexibility of a mobile dwelling.

Here's why tiny homes on wheels are the perfect investment for your Airbnb:

  • Unique and Memorable: Tiny homes offer a one-of-a-kind experience that appeals to travelers seeking something different.
  • Fast and Easy: These homes are classed as RVs, not buildings and they avoid building permits, and many of the restrictions, and can be delivered and set up within 60 days.
  • Low Overhead: Tiny homes typically have lower maintenance costs and utility bills compared to traditional homes, making them a more affordable investment.
  • Eco-Friendly: Built with sustainability in mind, tiny homes often feature energy-efficient appliances and eco-friendly materials, appealing to environmentally conscious travelers.
  • High Demand: The popularity of tiny living has soared in recent years, creating a strong demand for unique and affordable accommodations.
  • Durability: With a lifetime guarantee on the metal frame and trailer base, these units will far outlast traditional frame buildings with much less maintenance.

With a tiny home on wheels, you can:

  • Maximize Your Earnings: Attract guests willing to pay a premium for a unique and memorable experience.
  • Build a Strong Reputation: Offer exceptional service and amenities to cultivate a loyal customer base.
  • Invest in the Future: Benefit from the growing popularity of tiny living and sustainable tourism.

Ready to take the leap? Let's discuss how a tiny home on wheels can be the perfect addition to your Airbnb portfolio. hctinyhomes.org. Call or text 434 987 2349 to find out more. We are also looking for brokers.