9 Reasons a Tiny House Makes an Excellent Investment!

Have you thought about earning passive income with a tiny house rental unit? Because people have tried that, and it can work out very well!

Tiny houses even have advantages over traditional investment properties that hold true whether you plan to use your tiny house as a short-term or a long-term rental.

So, are you ready to learn why a tiny home can make a great investment?

Here’s our list of reasons why Mint tiny homes are some of the best passive income investments around!

#1 Prefabricated Building Keeps Tiny House Costs Down

Yes, tiny houses are smaller than traditional homes, but they are also prefabricated. This means the homes are built in our tiny house manufacturing facility instead of being constructed on-site.

Building a tiny home off-site allows us to keep construction costs down.

Off-site construction means we don’t have to battle the elements or site-specific issues that could hinder a tiny home budget or timeline.

What does this mean for you? It means your tiny house rental unit is likely to have a higher ROI or Return On Investment.

#2 A Tiny House Allows You to Change Markets

Let’s say you buy a traditional rental property that you’re sure will be a hit on Airbnb, but then…crickets.

With a traditional house, you’re stuck. Or at least you’re stuck until you can sell it, so let’s hope the real estate market is trending in your favor!

A tiny house helps you avoid this investment risk because solving the problem could be as simple as moving your house to a more in-demand spot.

9 Reasons a Tiny House Makes an Excellent Investment!

#3 A Tiny House Is an Easy Value-Add to an Existing Rental Property

If you hang out with investors, you probably know the term value-add. If you don’t, though, a value-add is anything you might do to or add to a property to increase its worth.

If you can put a tiny house in the backyard of another rental property you already own, that is a serious value-add!

So, if you already own an investment property, why wouldn’t you add a tiny house?!

#4 A Tiny House Can Be Sold Separately From the Land

A tiny house can make a great investment because it’s an easy value-add, but it can make a great rental for the opposite reason: tiny homes can be easily removed!

If you own a traditional rental property and the plan changes, you may be forced to sell.

Unfortunately, that would mean saying goodbye to the land and the house.

With a tiny home, however, you have the option to sell the land and the tiny home independently, which could prove very useful!

#5 Tiny Homes Can Be Repurposed

Sure, your Mint tiny home is your passive income stream at first, but maybe down the line, your needs are different.

Since traditional investment properties are location-dependent, they can be tricky to repurpose, but tiny homes don’t have that problem.

So if you start out with a tiny home Airbnb, and later it becomes your child or grandchild’s starter home, then so be it! They can even take it to college with them.

#6 The Tiny House Hype is Real

As people who’ve been around tiny homes a good, long time, trust us, the tiny house hype is real. Anyone and everyone will want to see pictures, ask questions, and maybe even tour your tiny home.

And this is excellent because tiny house hype brings renters!

Have you ever seen anything cozier than a tiny house vacation rental? Right. Neither have we. And neither has Airbnb!

#7 Tiny Homes Have Lower Maintenance Costs

If you’ve been shopping around for a rental property, you might find that the numbers only work if you buy a really old house.

Old houses can be great, but if the goal is passive income, you might want to set your sights on a tiny house.

After all, there’s nothing passive about fixing old-house problems at midnight.

Your tiny house will not only be a new structure, it will also be lower cost to maintain overall. The electric bill will be lower, and just imagine the savings when (eventually) it’s time to replace the floor. Better to only buy a few hundred square feet of the stuff, right?

#8 Tiny Homes Have a Lot of Beds

Tiny homes might be small, but the number of beds to square footage ratio is surprisingly high, thanks to loft bedrooms!

Homes that can sleep more people are more valuable- especially from a vacation rental standpoint!

So spend less money on the house while keeping the number of beds high! A tiny home saves the day again!

#9 Tiny Home and Traditional Home Rental Rates Are Similar

You’d think a one-bedroom traditional house would rent for more than a tiny home, but that’s not necessarily true!

Ultimately, it depends on your market, but tiny homes are proving to be very competitive.

So before you assume a tiny home won’t bring in as much money as a traditional house, you’ll want to double-check the math. You might be surprised!


Is a Tiny House Investment a Good Idea?

If this list doesn’t convince you, we don’t know what will!

(But we imagine you probably have a few more questions before you’ll be ready to take the leap.)

Have you browsed the tiny home floor plans in our gallery lately? We’ve been hard at work perfecting some designs that we think your guests or tenants will love!

Once you’ve narrowed down the options, you can compile your questions and use the link below to book your free tiny home consultation.

Thanks for reading our tiny house blog! We can’t wait to meet you!

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