Troy do you have experience renting tiny homes as vacation rentals?

Hope this works, yeah, it was a tiny photo and a close up, at that.

Hi Bernard, Justin is right, house hacking can be a great route whether you live in san diego or a tiny town like Aberdeen, WA (Where Brandon Turner is from).

The tenants usually didn't care, because they would just go find another place to rent, with no repercussions (at least in the areas where my properties were).I decided a while ago, that I'd rather have quality cashflow then quantity, because at the end of the day, the quantity you should be getting is often not equal to the amount you actually net.Plus there seems to be less options later, if/when you decide to make some changes (sell, exchange, etc).

But, it doesn't look like that's a tenant pool for you in your town, unfortunately.Another thought is that if I was to buy a rental property now, knowing what I do, I'd buy one with tiny studio apartments - whether your tenants are students or not.The building I managed in Silicon Valley, CA, was next to a private university that also had a law school.  

Forcing appreciation gives you some extra equity insulation from a drop in prices, or if you would rather be more aggressive it allows you the ability to cash out the extra equity via refinance or 1031 to redeploy it, but this also has added risks, there is no free lunch.Conservative financing, with lots of equity and cash flow margin for error, and cash reserves is another key ... in a downturn the quality of cash flow is every bit as important (I'd argue even more important) than the quantity ... what levels of margin are appropriate depends on the quality of the asset, which directly affects the quality and volatility of cash flows; a class B property will tend to have lower initial cash flow but more steady and increasing cash flow than a class C property ... judging adequate margins of safety is the really tricky part, because not only do you need to factor in quality as stated above but also what may be perfectly adequate in a "normal" market may be grossly inadequate in a downturn ... and yes, cash flow is affected in a downturn, it is not somehow magically immune; rents may not go down, but they very often do stop.

These lists only contain a tiny fraction of the renter population anyways, so are pretty much useless.

It's a gambler's mentality, which is always foolish, to think that a tiny investment will make a large profit, especially when there are a whole bunch of fingers in that pie.

I’ve seen drawings from my architect where 2bd can be fit into a sub-500 square feet plan (at the insistence of his client) and was approved, but there was almost no living room to speak of or the bedrooms were tiny to the point of impractical.

I'm impressed with the quantity and quality of advice shared, I'm loving BP more the more I use it.