$$$$TINY HOUSE$$$$ Jody Brady

BUDGET AND FINANCE Bill Brady

 WHERE WE USED TO LIVE

Our former home in Arlington, Virginia.

 THEN WE CHANGED OUR MINDS

Tiny House Conference, Charlotte, NC April 2014

 AND WE BUILT OUR OWN HOUSE

Our 250-sq-ft, tiny house in the Blue Ridge mountains of Virginia

WHAT ARE TINY HOUSES $$$$$$$$
or
SELLING FOR? $$
 MOVING AWAY FROM BIG

Another of our former houses: 3,500-sq-ft in Fairfax, sold for $500,000 in 2003
Median US house price in 2015: $224,000
Median DC house price in 2015: $410,000—plus financing, taxes, insurance, repair…
THE REAL COST
• 70.7% of US homeowners pay
to finance their homes.
Financing can double the
original cost of a house over
30 years.
• Only 32% of tiny house
owners have mortgages.

• Large houses cost more than

tiny houses to insure, to heat
and cool, to maintain and
repair…and they come with
higher property taxes.
 LESS SQUARE FOOTAGE = LESS $$

$129,000 buys a 480-sq-ft foundation-built house on 1 acre in paradise (Hawaii).

 EVEN LESS SQ. FT. = A LOT LESS $$

$12,500 buys a complete 250-sq-ft stationary house—but no land.

 SOMEWHERE IN THE MIDDLE

Conference speakers Matt and Laura LaVoie’s $20,000, 120-sq-ft house.

 PUT THAT ON WHEELS, PLEASE

Tiny houses on wheels (THOWs) currently listed on tinyhouselistings.com are asking

between $15,000 and $80,000.
 BELLS AND WHISTLES

$75,000 buys this 288-sq-ft house in Asheville complete with high-end finishes.
 EASIER ON THE WALLET

$25,000 buys this “fully loaded” 160-sq-ft THOW in Raleigh.

 CUSTOM TINY

Having a tiny home built isn’t necessarily any more expensive than DIY building
• Fewer costly mistakes
• No investment in tools
• Space to build indoors
• Economy of scale (savings on materials)

Builders: Driftwood Homes USA, Blue Ridge Tiny Homes, Tumbleweed, Four
Lights Tiny House Co., Tiny Home Builders, Mitchcraft Tiny, Tiny Life Construction,
Rocky Mountain Tiny Houses, Tiny House Chattanooga, etc., etc.

T iny Idahomes LLC

T he Clear creek m odel
 8'6" by 20' - $29,995
 8'6" by 22' - $33,995
 8'6" by 24' - $37,995
 8'6" by 26' - $39,995
 8'6" by 28' - $42,495
 DIY TINY

This DIY tiny was built for only $8,000! (lovingtinylife.com)

Cost of average tiny build: $25,000 Cost of our tiny build: $40,000
 WHAT WILL Budget
MY TINY BUILD COST?
 A TALE OF TWO BUDGETS

Building materials: $14,000 Building materials total: $21,500

 Trailer and jacks: $4750
Car and truck rental: $2,750  Framing material: $4,200
 Siding: $2750
Build space rental: $2,250 ($250/month for 9 months)  Insulation and shower walls: $1375
 Windows and doors: $2450
Volunteer meals: $1,500  Skylight flashing: $235
 Roofing/flashing: $1,235
Furnishings/finishes: $1,500  Interior walls and ceiling: $1000
 Paint and spackling: $90
Contracted Labor: $1,250  Flooring: $270
 Roofer: $750  Plumbing supplies: $230
 Welding: $300  Hot water heater: $580
 Electrical consultation: $200  Shower base:$345
 Electrical supplies: $120
Appliances: $1,000  Lights and ceiling fan $170
 Fridge: $325
Kitchen sink and faucet: $195
To t a l b u i ld c o s t : $ 24 , 2 5 0 
 Kitchen cabinets: $40
 Countertop: $280
Estimated sweat equity: $16,000 (800 hours at $20/hour*)  Closet door and handles: $75
Total Value: $40,250  Propane tank: $65
 Berkey Water Filter: $350

Labor total: $12,500

 Framing: $1,800
 Elevation: $1,600
 Insulation: (shower, windows, doors installation) $1,500
 Roofing: $1,200
 Flooring: $500
 Cabinets and countertop: $400
 Interior walls: $1,200
 Electric (materials & labor): $2,000
 Pluming (materials & labor): $1,680
Sources:  Misc: (flashing for trailer, sheet insulation on ceiling,
 http://thisisthelittlelife.com/2016/02/12/linas-tiny-house-the-lucky- closet): $600
penny/
 https://veganfruition.files.wordpress.com/2015/08/new-handout.pdf
To t a l b u i ld c o s t: $ 3 4 ,0 0 0
 BUILDING YOUR BUDGET

 Site

 Design

 Trailer (for THOW)

 Materials

 Labor

 Energy source/appliances

 Furnishings
 SITE
$$$ = Buy land
 Ru r a l l a n d : L a u r a a n d M a t t L av o i e , A s h v i l l e , N C
 T i ny - f r i e n d l y z o n i n g : U n i o n M i l l , N C ; n o m i n i m u m s q - f t
fo r fo u n d a t i o n h o u s e s
 T i ny h o u s e c o m m u n i t i e s : R a g s d a l e T i ny H o m e s , P a l m
Coast, FL; $45,000/lot
 E c o v i l l a g e s : H i g h C ov e , M i t c h e l l C o u n t y, N C ;
$ 4 5 , 0 0 0 / 1 / 2 - a c r e l ot

$ $ = Re n t s i te / t i ny h o u s e c o m m u n i t y / R V p a r k ( $ 10 0 -
750/month)
 B r a d y t i ny h o u s e : $ 27 5 / m o n t h fo r h o u s e s i te , e l e c t r i c ,
wa te r, l a u n d r y / f r e e z e r a c c e s s , s to r a g e , g u e s t r o o m
 W i n s to n - S a l e m , N C , f a r m : $ 4 0 0 / m o n t h fo r e l e c t r i c ,
f r e s h wa te r, g a r d e n s p a c e .
 Lemon Cove Village in northern CA: $450 -595
 Faye t te v i l l e , A R , b a c k ya r d : $ 2 0 0 / m o n t h , n o h o o k - u p s

$ = Find a free site

 Fa m i l y / f r i e n d s
 B a r te r f o r s e r v i c e s ( e l d e r c a r e ; f a r m h e l p )
 DESIGN

$$$ = Custom design: Hire an architect

 $2500-$6000

$$ = Buy plans

 Tiny Life house plan guide

http://th etinylife.com /tiny -h ouse -pla ns/
 Tiny House Build digital: $299
http://tinyhou sebuilds tore.c om
 Mini Motives full plans: $350
http:// minimotives.com /buy -pla ns/

$ = Free plans; DIY design

 Free DIY design tool: Sketchup

 Free plans: http://ww w.tinyhou sedesig n.com/fre e -plan s/
 Free design included with custom -built and resale homes
Graph paper design
Floor plan, facades, framing – all drawn to scale

http://simplyenough.weebly.com/building/slightly-revised-floor-plan

What did we leave out?

Ventilation system! Water tank/pump/pressure tank!

Other DIY tips: standard size materials, 24” framing,

 TRAILER

$$$ = New, tiny house trailer with shipping: $3000 -7000

Tumbleweed: 20’ $4500 + shipping
Tiny Home Builders: 20’ $3400 + shipping

$ = Used equipment trailer, RV base: $200-$1900

 MATERIALS

$$$ = New materials

 Important “buy new” items: trailer, electrical, plumbing, framing
 Shop around, buy on sale

$$ = Used/surplus materials
 Restore; Community Forklift
 Craigslist
 Architectural salvage; salvage yards
 Construction sites
 DiggersList.com and Build.Recycle.net

$ = Free materials
 Craigslist
 Freecycle
 Construction sites
 Spreading the word
Materials run about $8,000 - $40,000

Money
Spend the time to scavenge highest tickets
items: windows/doors, appliances

Time
Spend on ready-made cabinets; save on
lighting fixtures and finishes

Mobility
Spend on a new, road-worth trailer; save with
reclaimed kitchen cabinets and sink

Sustainability
Spend on a solar generator; save on a DIY
composting toilet

Size
Spend on a larger trailer; save on
flooring/siding
 LABOR

$$$ = Hire a builder to deliver finished product

 Driftwood Tiny Homes (SC), Tumbleweed (CA), Tiny House
Builders (GA), Rocky Mountain Tiny Homes (CO), Portland
Alternative Dwellings (OR), Blue Ridge Tiny Homes (NC)

$$ = Hire out some work; DIY the rest

 Buy a shell; finish the rest
18' FSBO in PA: $10,000--------------------
 Pay electricians, plumbers

$ = DIY all the way

 Books, websites, YouTube
 Tiny House Design & Construction
Guide, Tiny Home Builders
Tumbleweed: Have-It-All-Built v. Have-the-Shell-Built
• Fully constructed models: $58,000 - $70,000
• “Barnraiser” models: $15,000 -$19,000

(But…add-ons can turn $15K into $34.5K!)

 ENERGY/APPLIANCES

$$$ = Renewable energy installation; solar -friendly appliances;

“clean” woodstove
 SolMan Classic generator, $5000
 Sundanzer Solar-Powered Refrigerator, $1200
 Kimberly wood stove, Unforgettable Fire, $4000

$$ = Propane; wood stove; DIY solar

 Noritz Tankless Propane Water Heater, $650
 Pipsqueak wood stove, Salamander, $500
 DIY solar parts from Alt -E store, $2000 (120squarefeet.com)

$ = Standard electrical hookup; second -hand appliances

 Ceiling fan, Restore, $20
 TOOLS

$$$ = Buy all needed tools

What tools will you need throughout the build? Continue to use
after the build?

$$ = Rent larger tools; buy used tools

What equipment do you need for a short time?

What doesn’t need to be new?

$ = Borrow tools

Tool library
Friends/family
HOW WILL I PAY FOR Finance
ALL THAT?
 SAVINGS

 Invest cash savings into your build

 Don’t have much in the bank? Cut back and start saving now.
Can you eliminate subscriptions, memberships, housing, cable ,
phone data plan, eating out, store-bought gif ts,?

 Borrow from your 401K account

Take a “hardship” withdrawal from
your 401K, without being required
to pay it back, for the construction
or down payment on a primar y
residence.
 DOWNSIZE—AND CASH IN

 Maximize your profit: make small repairs, paint, stage, curb

appeal
 Renting? Move somewhere with less (or no) rent and bank
what you save. We saved $900/month moving to a smaller
apartment.

Still need a car? Sell a newer car

and buy a used truck.

Know what sells best where and

for how much
 Craigslist Auction—catalog Auction—weekly

Yard sale Consignment store eBay

 SPONSORSHIPS

G e t i n - k i n d d o n a t i o n s , m a te r i a l s , l a b o r, d i s c o u n t s

T h e v a l u e o f s p o n s o r s h i p s to t i ny h o u s e b u i l d e r s :
Andrew Odom $5340
Macy Miller $5940
M i c h e l l e B oy d $ 16 , 0 0 0
Tr a c y T h o m s o n $ 7 0 , 0 0 0

Who?
E c o Fo i l , E t h e l G l ov e s , L P B u i l d i n g P r o d u c t s , G u l f C o a s t S u p p l y & M a n u f a c t u r i n g , G o a l Z e r o ,
L e a t h e r m a n , G r e e n B u i l d i n g S u p p l y, U n fo r g e t t a b l e F i r e , Ro c k l e r Wo o d w o r k i n g A n d
H a r d wa r e , C l i m a te R i g h t , L owe s , P a r r L u m b e r, A m e r i c a n S t a n d a r d , O r e g o n S h e p h e r d ,
M a s te r C r a f t Fu r n i t u r e , L i n o l e u m C i t y, j u s t b l i n d s . c o m , G e o r g e M o r l a n P l u m b i n g S u p p l y,
N a t u r e ’ s H e a d , M i l l e r P a i n t C o . , Tr i m -Te x , Pe g R a i l , Roya l Ro b b i n s , B i o l i te , Ae r o p r e s s …

 C r e a te a p i t c h : H o u s e n a m e , t a g l i n e , m i s s i o n s t a te m e n t
 F i n d p a r t n e r s : I d e n t i f y l i ke - m i n d e d b u s i n e s s e s
Local, shared mission, new -kid-on-the-block
 C r e a te v a l u e : W h a t c a n yo u o f fe r t h e m ?
B l o g a d s , f r e e p r e s s , o p e n h o u s e s , I n s t a g r a m p i c t u r e s / h a s h t a g s , Yo u Tu b e v i d e o s …
 I t ’ s p e r s o n a l : W h o i s t h e b e s t p e r s o n to t a l k / w r i t e to ?
 Fo l l o w t h r o u g h : d e l i v e r, d o c u m e n t , c o m m u n i c a t e
 L e v e r a g e : U s e e a r l y s p o n s o r s h i p s to g a r n e r m o r e
 CROWD SOURCING

Indiegogo
 The Tiny House Mural Tour: Get an original painting -- $5408
 A Tiny Home Dream: Sacred sanctuary -- $8541
 Our Big Tiny Dream: Handmade ceramic goods for our supporters
-- $2045

Kickstarter
 Tiny House = Tiny Home: Help two students -- $2094
 Lovare Homestead: a Tiny House Community -- $12,192
 The Tiny Adventure – funding unsuccessful
 Romani Vardo (Gypsy Wagon), Tiny Home for the Wanderer –
funding unsuccessful

GoFundMe
 Tiny House Dream -- $205
 Our Tiny House Homestead -- $2170
 Big Life, Tiny House -- $2880
 LOANS

 RV loan (including Tumbleweed)

 Manufacturer/builder loan

 Bank/credit union loan

 Personal loan

 Peer-to-peer lending: http://www.tinyhouselending.com

 Credit cards

Free ebook on loans: http://tinyhouseloans.com

RESEARCH, RESEARCH, Resources
RESEARCH PAYS
 TINY $$ RESOURCES

Books/eBooks
 Your Message He re, Andrew Odom
 Build Your Own Tiny House with Sponsored Products,
Plenter and Thomas
Videos
 Tiny House, Giant Journey
 Relax Shacks
Newsletters
 Tiny House Talk
Blogs
 The Tiny Life, http://thetinylife.com
 Tiny House Build, http://tinyhousebuild.com/blog /
People
 Meetup groups
 Workshops/conferences