4 Reasons to Invest in The Tiny House Market
Tiny homes, also known as accessory dwelling units or ADU’s, are continuing to gain popularity across the country. In May of 2017, the city of Atlanta passed an amendment which legalized tiny home communities throughout the city. Due to the recent passing of the amendment several tiny home communities are currently underway in various parts of Atlanta. Tiny home developers are currently looking to partner with investors to develop multiple tiny home projects across the city.
The Top 4 reasons to Invest in ADU Real Estate
1. Affordability and Lower Taxes
On average, tiny homes can be built for as little as $50,000. With a 25% down
2. Tiny Homes Appeal to Many Buyers
ADU’s have the unique ability to appeal to multiple buyers because they offer many unique features at an affordable price. The latest trend in the market is the growing number of retirement developments. As baby boomers continue to hit retirement age it is expected that tiny home retirement communities will continue to grow because of their affordable retirement housing solution. Tiny homes also appeal to millennials, young families, and first time home buyers because of their low cost, flexibility, and eco-friendly features.
3. Tiny Homes are Easy to Manage
A typical tiny home transaction is fairly simple. First, the investor funds the development of an ADU on a homeowner’s land or within a community, then the investor pays a small fee to the homeowner for using their land, then the investor profits from the tiny home rental or from the tiny home community and is then able to invest in multiple ADU’s. The process of investing in tiny homes is easy for investors because the resources are already established. Investors do not have to worry about purchasing land, building, or planning communities and finding additional resources like electricity or water. Instead, all that is required is an initial investment and the investor can choose their level of involvement within the development.
4. More Units and High Yields
The low initial investment amount required for ADU’s allows investors to purchase more tiny home units over a shorter period of time. With tiny homes, investors are able to increase inventory and increase profits at a faster rate compared to
The Numbers Speak For Themselves
Let’s say two investors make a long-term investment. One investor buys a 10-unit building and the other only
Investment Opportunities in Atlanta
Backyard Cottages The goal of the Backyard Cottages project is to create rental housing in pre-established dense residential areas. The program offers an affordable solution to building and owning backyard cottages to homeowners without requiring them to invest the capital needed to build a tiny home in their backyard. Homeowners lease their backyards, and investors and their team build the outdoor cottage and rent them to long-term tenants at an attainable market rate. The investors keep all the profits and are only required to pay the homeowners a small fee for their land. The Backyard Cottages project is currently seeking investors to help fund in the development of these tiny homes.
East Point and Clarkston Two tiny-home developments in Atlanta that are looking for investors are East Point and Clarkston. These communities will be neighborhoods consisting of small homes and other features including parks, walking trails and aquatic facilities. Each development offers flexibility and scalability for each investor, because of the variety of designs and sizes offered. Both subdivisions have already met the zoning requirements required by the city of Atlanta and have been approved for development. Both the East Point and Clarkston developments are currently seeking investors.
The Time to Invest Is Now