For many individuals, rent or mortgage payments are a major monthly expense. But one young homeowner, Precious Price, discovered a clever way to turn her housing costs into a source of passive income. Price, a 26-year-old CNBC contributor, built a luxurious tiny home in her backyard for a cost of around $35,000. This allowed her to rent out her main house and essentially get paid to live in her backyard.
Price’s journey began in 2019 when she purchased a 1,400-square-foot house in Georgia for just under $200,000. Initially, she generated extra income by listing spare rooms on Airbnb, but the pandemic significantly reduced demand for shared living spaces. This prompted her innovative idea of building a tiny home in her backyard. She bought a shed and hired contractors to transform it into a cozy dwelling, simplifying the construction process. She managed to pay off the entire cost of the build in less than two years.
Price’s 296-square-foot backyard home is considered a “luxury tiny home,” and she’s reaping the rewards of her investment. While she spends $1,580 per month on her mortgage, property taxes, and utilities, she earns $2,725 per month from renting out her main house. This translates to a monthly profit of nearly $1,150, which amounts to an annual income of close to $14,000.
While there are some adjustments, such as downsizing her wardrobe and hosting fewer gatherings, Price believes the trade-off is worth it. She’s even planning to add a guest suite to her main home, expanding her rental options and increasing her income potential.
Price’s success story highlights the potential of creative solutions for tackling financial challenges and achieving financial independence. Her backyard transformation demonstrates that even with limited space, it’s possible to build a comfortable and profitable lifestyle.
