Thread by @Codie_Sanchez

I am lazy BUT I like money.

I like it to come relatively passively.

I also like cool things that make $.

Aka tiny home rentals.

Everything you need to know about how to clear $5-15k+/ month with a teeny casa...

Reminder:
@RobuiltChannel built his first casa for $72k, cleared lots of $$

Then he built an entire biz around it
*Youtube
*Consulting
*tiny home villages
*Glamping

He gave us his secrets (I interrogated him)

KEYS -->

#1: Starting off
Key consideration? Location!

Search Airbnb listings for undeveloped land
Find popular areas for camping, etc (
Know the zoning of the land (use @zillow)

*Pro tip: Stick a pair of wheels on the tiny houses and they can (often) be considered like an RV*

#2 Financing

Tiny houses cost ~$59k on average, way less than a traditional home
- Also means you generally can't get a mortgage for various reasons
- You CAN however get a loan

Loan types:
- Recreational vehicle loan
- Travel trailer loan
- Rates bw 6-19% in 15-yr terms

Can also possibly use personal loans or line of credit
- Interest will be tax-deductible if you plan to continue owning a traditional house

My personal favorite = cash-out refinancing
- You take out cash from your current mortgage and use it to invest in the tiny home

#3 Basic Building Costs:

Building a tiny home is a whole other beast than buying but not awful once you get pas the regulations

🔑 Hire a draftsperson or an architect
Draftsperson = $1.75 – $2.50/ft² cheaper than an architect but possibly at the expense of design.

*Hot tip: make sure your draftsperson or architect is aware of your state/city’s prescriptive code

If your design adheres to it you could save a good $2,500 on engineering fees later on*

There are a few tests and reports you need as soon as you secure your land:
- Percolation tests ($2.2K)
- Site plans ($100)
- Fire flow test ($80)
- Will Serve Letter to your water department
- A construction waste disposal plan ($150)
- Plan check ($1-2K)
- School fees ($1-3K)

Couple other tests/ things you might need:

- Sail report ($3,000) - not needed if prescriptive code followed
- Grading plan - not usually something to worry about with tiny houses
- Active water meter ($6k-$22k) - if not one there already

Still with me? Good, that’s the hardest part which will cost you about ~$22,480 (on the high end) just to start building

The construction itself is usually another $12,000 to $35,000. Breakdown coming up so keep reading 😜

Next we get into pricing and specific costs breakdowns, this'll approach will be familiar if you've read this thread

https://twitter.com/Codie_Sanchez/status/1379070634173599746

#2: Pricing and operating your listing

Most of Rob’s listings are booked almost 100% of the year = prices are too low

Play around with your minimum stay length and see what works for your listing

*Pro tip: Up your prices when demand is high during the summer and weekends*

Your Monthly Costs:

$25: house supplies (toilet paper, shampoo, etc)

$50: insurance

$50: utilities

$120: cleaning fees (can be passed on to guests)

$800: loan (monthly loan payments vary)

$100: pest control

$60: internet

$40: trash

_______________

Grand Total: $1,245

How much Rob pulls in depends on the listing, location, and time of year:

On average:
$4243 in the Fall
$3915 at the peak of Summer

Applying max costs = profits of at least ~$2,834 a month to pay off your mortgage/loans and have extra left over.

#3: Have boots on the ground

To help you deal with things, you’ll need to hire a few people and you’ll need to pay them well, especially if you plan to operate your rental remotely:

- Cleaning Services
- Handyperson
- Contractor
- Realtor
- Landscaper

Cleaners = eyes and ears of the operation, probs the most important piece
- Know what's damaged, which supplies are about to run out, and if the guests are going to cause any trouble/ need any help

Handy people and Contractors = great for emergency fixes + routine checkups

Realtor — second most important person you’ll need because of the local connections they have

Landscaper - Not always necessary, depends on layout and needs

#4: Automate as much as you can
There are a number of programs out there that’ll make your life (and the lives of the people you hire) a LOT easier

Your Porter - gives the cleaners access to your Airbnb activity and sends them a message every time a booking is made so they can prep

Beyond Pricing - automates listing prices for hosts depending on holidays, seasonality, day of the week, and the base pay you set your rental

Which one of you hooligans is also obsessed with tiny homes?