Woman Lives in a Backyard Tiny Home and Rents Out Her Larger House to Cover Expenses
May 22, 2023
source: Youtube/CNBC Make It
Precious Price discovered more than just a minimalistic lifestyle when she embraced living in a tiny home—it opened up a world of financial freedom. As a speaker, marketing strategist, and social and real estate entrepreneur, Price now shares her knowledge and expertise to help others achieve the same level of financial independence.
In 2019, Price purchased her first investment property in Atlanta and made the decision to construct a tiny house in the backyard. By renting out the tiny house before eventually moving in, she was able to recoup her investment within two years and live without the burden of rent or mortgage payments. Despite its size, measuring less than 300 sq. ft., Price found everything she needed in her tiny home and developed a deep attachment to it, referring to it as her “baby.”
The entire process of building her tiny home was documented on Price’s YouTube series, “Going Tiny.” The charming Atlanta dwelling gained significant attention and was even featured on CNBC Make It’s YouTube channel, garnering over 130,000 views within days. This viral success, along with Price’s rental portfolio, propelled her to coach others on how to generate substantial income through short-term rentals. It also led her to launch her own company, LANDRIFT, a learning platform that provides valuable insights into the real estate market, empowering individuals to build wealth and advocating for homeownership as a fundamental right.
Price’s passion for creating positive change in the real estate industry was further showcased in her TEDx talk in 2022. During the talk, she addressed the pressing issue of housing insecurity and emphasized the importance of capital and “social good” in real estate practices. This talk served as a testament to the impact that Price’s journey, starting with the construction of her tiny home, has had on her life and the lives of others.
The decision to build a smaller dwelling came when Price realized that her three-bedroom, two-bathroom house was simply too spacious for her needs. As a consultant with frequent travel commitments, she seized the opportunity to rent out her larger house on a full-time basis. Construction on Price’s tiny home commenced in October 2020, partially funded by the income she generated from short-term rentals on Airbnb.
To finance the project, Price tapped into her resources, using $20,000 from credit cards and liquidating $8,500 worth of stocks acquired through her regular employment. During the construction phase, she temporarily rented a room in her neighbor’s house. The initial expenses included $2,000 for city planning and electric permits. While Price initially budgeted $25,000 for the project, the total cost ultimately reached $35,836 by the completion date in March 2021. Some setbacks arose due to subpar work by contractors, resulting in additional expenses. Additionally, Price had purchased surplus wood that ultimately went unused.
These challenges served as valuable learning experiences for Price. She offset the overages by renting out her tiny home on Airbnb, initially offering short-term rentals before transitioning to long-term ones. Over the course of two years, she earned approximately $32,000 from renting out the tiny house. Eventually, Price made the decision to move into the tiny home herself, fully embracing the unique lifestyle it offered and maximizing her savings potential.
Price describes her tiny home as a self-contained studio apartment. Upon entering, there is a cozy living room to the left and a dining area to the right. The living room features a comfortable couch with hidden storage and a wall-mounted TV. Adjacent to the living room is a dining nook with an extended countertop and two stools tucked underneath. Continuing past the nook, one enters Price’s favorite area—the kitchen. Despite its compact size, the kitchen boasts nearly full-sized appliances, ample counter space, and cabinets. A small induction cooktop, a full-sized sink and a floating shelf with a microwave complete the functionality of the kitchen.
To create an open and airy ambiance, Price strategically incorporated windows and mirrors throughout the tiny home. The bathroom, accessed through a sliding barn door, showcases a full-sized shower with glass doors and a small window, giving the illusion of a larger space. Adjacent to the shower are the toilet and sink, accompanied by a towel rack and a floating shelf for extra storage.
Stepping out of the bathroom, one’s attention is drawn to the front door. On the right side of the door, a compact office space awaits, featuring a wall-mounted folding desk and chair. On the left side of the door, a library ladder leads up to the loft sleeping area. While the loft space doesn’t offer much room for activities due to its low ceiling, it serves as a cozy spot for relaxation, reading, or a quick nap.
Outside the tiny home, there is a spacious 70-foot by 104-foot backyard, complete with a shared fire pit that Price’s student tenants from the larger house can also enjoy. The rental income from the larger house covers the mortgage payments, providing Price with additional income and allowing her to live in the smaller home rent-free. This financial arrangement has laid the foundation for Price to consider expanding her property and building an additional structure on the site.
Her story serves as an inspiration to those who seek a life free from the burden of housing costs, proving that with determination, creativity, and a tiny home, financial freedom is within reach. And we are all for it!