Young Homeowner Profits $14K Per Year Living In A 'Luxury' Tiny Home In Her Own Backyard: 'It's Amazing'
Rent or mortgage payments are often the biggest monthly expenses in an individual’s life. One young homeowner found a way to flip her house payments into a source of passive income.
What To Know: CNBC contributor Precious Price, 26, built a luxury tiny home in her backyard for around $35,000 so she could free up her main house for rentals. Now she essentially gets paid to live out back.
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“As I stared out the kitchen window into my huge backyard, something clicked: I could use that space to build a tiny home to live in, and fully rent out the main house,” Price wrote.
In 2019, Price bought a 1,400-square-foot house in Georgia for just under $200,000. She got started by listing spare rooms on Airbnb Inc (NASDAQ:ABNB) to generate extra income, but when the pandemic hit, the amount of people looking to share living quarters dried up.
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That’s when she got the idea to build the tiny home in her backyard. She actually purchased a shed and hired contractors to build it out into a home, which helped to simplify the process. She paid off the entire cost of the build in less than two years.
Price considers the 296-square-foot backyard house a “luxury tiny home” and she’s profiting from the build. She spends $1,580 per month on her mortgage, property taxes and utility bills, but she generates $2,725 per month by renting out the main house. That leaves her with close to $1,150 profit on a monthly basis, which means she’s getting paid close to $14,000 a year to live in her own backyard.
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There are some drawbacks. She’s had to downsize her wardrobe and cut back on hosting get-togethers, but it’s well worth it, she says. She’s even planning to add a guest suite to the main home to be able to offer more rental options.
“It's amazing what you can do with a bit of backyard space,” Price wrote.
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This illustration was generated using artificial intelligence via MidJourney.
This story is part of a new series of features on the subject of success, Benzinga Inspire. Some elements of this story were previously reported by Benzinga and it has been updated.
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