‘I forget I’m living in a shed’

In 2020, I constructed a small house in the yard of my 1,400- square-foot home in Atlanta, Georgia for about $35,000

Today, it’s my main home, and I reside in it for $0; my home loan, real estate tax and energy expenses are covered by lease I gather from leasing my primary house.

The home is just 296 square feet, however it’s effectively created. A great deal of the time, I forget I’m living in a shed.

Tiny houses are simply starting to get traction in the U.S., however the procedure isn’t as uncomplicated as it ought to be. Here’s my recommendations on how to develop your own yard small house:

Although some significant cities are reducing guidelines on small houses to motivate more real estate supply, numerous still limit what you can and can refrain from doing with your land.

You can normally discover the zoning codes for your home address through your city’s local zoning map. Do a quick Google search with your city’s name and the terms “zoning map” or “zoning office.”

If nothing comes up, call your city’s building and planning department.

Your zone will determine whether or not tiny homes are permitted, as well as how big your lot needs to be in order to build one, and the maximum size of the structure.

Instead of a bank loan, I cashed out $8,500 in stocks and put about $20,000 on my credit cards to pay for everything. This allowed me to get cash back.

But if you need financial assistance, there are many other options:

• A home equity line of credit (HELOC) lets you borrow against the available equity in your home, and the house is used as collateral for the line of credit.
• A home equity loan gives you a lump sum payment with a fixed (but usually higher) interest rate.
• Cash-out refinancing replaces your existing mortgage with new terms and allows you to cash out the difference.
• A construction loan is short-term financing that can be used to cover the costs associated with building a house, from start to finish.

The most expensive but customizable option is a “stick built” — a home built from scratch. The most cost-efficient is a prefabricated unit.

I used a shed from Liberty Storage Solutions, which eased labor costs because the structure already had windows, a door, and the foundations for lighting and electricity.

Once you’ve picked a structure, you’ll need at least a site plan (which outlines your existing lot and proposed improvements) and a floor plan (the layout for the structure) to start construction.

You can find qualified architects, engineers or land surveyors online to help with this. I bought my site plan from 24h Plans for $99.

Since I used a prefabricated shed, I easily designed my own interior online (i.e., wall dimensions, where I wanted to place my work desk).

A general contractor can oversee pretty much all aspects of a construction project, including drywall installation, plumbing and paint jobs.

Local home improvement stores often have a list of recommended contractors, or you can ask friends, family and neighbors.

Show your plan to multiple contractors and try to get at least five different bids. To get the most accurate estimated cost, make sure to discuss what materials you want to use (i.e., type of wood floors, cabinetry, tiles).

Don’t make your decision solely on price. Ask for photos of their previous work and read the reviews online.

I didn’t use a general contractor and prematurely chose a construction team that wasn’t qualified. In hindsight, I wish I did more research. Choosing poorly cost me extra money, and it was the most frustrating part of my build.

Before moving in, I rented out my tiny home for almost two years — and grossed almost $32,000, nearly covering the cost of what I spent to build the home.

But your ROI doesn’t have to be money-related. It could be that you have have more flexibility in the form of a home office, or even a separate living space for aging parents or guests.

The goal is to have fun with designing the perfect space for your ideal lifestyle.

Precious Price is a TEDx speaker, marketing strategist, tiny homes expert, and social entrepreneur. In 2021, she founded LANDRIFT, a digital real estate marketplace, amidst the national conversation around the impact of short-term rentals on housing affordability and availability. She holds a master’s degree in management information systems from Indiana University. Follow her on Instagram, Twitter and You Tube

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