In this case, I would rent the main house and live in the "tiny home."

You know, but I might be just a tiny bit biased.

We also started building a tiny home this year.

Its the same thing in cheap markets were they sell say 130k new construction.. those deals usually have 10 to 15% gross margins so they are making 13 to maybe 20k if they are really lucky net profit but getting good leverage and pumping out 50 in a year.We will build about 40 homes this year.. so while we don't hit homeruns we make it up in volume and god willing the market holding and the star's aligning and every other lucky charm we can pull .Like @Will Barnard even though it was an outlier for us we did a 5 million dollar flip and made 1.5 on it.. but that was not something we could recreate .. and I don't have the stones to do that these days.. with my cheaper homes I know my bank will let me make them into rentals if they don't sell and with the rents the way they are they would cash flow or be a tiny bit negative as we rode out the market... 

Another market, just because my brother and I stayed at one are Tiny Houses. 

Anothr person told me that the vinyl whill shatter into tiny pieces when it is pulled out?

My favorite personal example is when my ex got a bill for $1700 to fix the tiny front porch railings, likely $300 in materials at most.. they never asked--- they tell you to jump, and you jump.     

Marriott has a chain of 7 new "feature" hotels in the world targeting Millennials providing social environments on the main level and tiny hotel rooms.

If its a REO and the bank has it listed at $80K, a $30K offer has a very tiny chance of getting accepted.The qualification requirement is a common part of REO offerings.

On a side note, my wife and I have considered buying this house for ourselves, but she doesn't want to go from one tiny 3/1 to another tiny 3/1...so you know how that goes.