Millions of Americans are experiencing the housing crisis. Those who bought homes before 2020 should be sitting pretty. However, things look bleak if you are in the market after the pandemic.
Personally, I believe the solution lies in having multiple families living together and saving money. Eventually, they will be able to afford a home of their own.
However, most people consider that reality a step in the wrong direction. So, what are some alternatives? We can purchase a home and get roommates. How about moving to a small city or overseas?
Dating with Dividends
The magic of tiny homes. What if you could get an amazing home for $75,000? Would that be a financial burden on a family?
Tiny homes and minimalist living are here to stay. Tiny homes provide a level of value that most homes don’t even offer. However, there are some drawbacks.
I just purchased a tiny home in the form of a 2024 Forest River 402LFT destination RV. This thing is massive and has all the bells and whistles. It reminds me of a small studio you would find in Manhattan, New York.
But why did I purchase a tiny home? I already own three full-size homes across the United States. Why purchase a tiny home at this point?
You’ll need land. Our primary residence sits on three acres in Florida, so it was easy to fit this massive machine in the middle of our land.
Becoming an Entrepreneur #3
You’ll need to secure some land if you want a tiny home. You don’t want to pay “lot rent” that will continue to rise with inflation.
You will also need to install a power source. My RV runs on a 50 amp breaker that powers three air conditioners, a refrigerator, a ceiling fan, a microwave, a washer, and a dryer.
I don’t yet have my 50 amp hook-up installed yet, but we can still use a standard 120V plug from our home to get some power into the RV.
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We have access to all the lights, water pump, water heater, TV, and automated blinds with a standard extension cord. We have a decent setup just off 120V if the weather is cool. It is still glamping.
We can also use the water faucets, toilet, and shower. We would just need to empty the black water tank via a portable container and take it to an RV dumpsite on the military base or a local campsite.
Eventually, we want to install a small septic tank system to support the RV. The 50 amp breaker and septic system will cost about $10,000 together.
Why a tiny home? Why now? We have been trying to get into real estate for the last couple of years and have been looking at mobile homes during this timeframe.
Homeownership Will Only Be For The Rich
The mobile homes were too big and too expensive. We couldn’t find something small and compact. All the mobile homes we looked at could fit a family of six—way too big for our needs.
But what are our needs? I want to ensure my kids and grandkids have shelter. Also, my parents or my wife’s parents could stay in the tiny home.
RV, barnhouse, and tiny home prices will continue to rise as more people use them as permanent residences.
We bought a used 30 x 20 barnhouse in 2020 for $8,500. Now, a similar used barnhouse is close to $15,000. Demand for these things is growing fast and from much different demographics than before.
If you are a parent, you must secure housing for your kids. That’s the way of the world today and tomorrow.
Five Takeaways from “Create Something Awesome”
No longer will your kids be able to work a job and purchase a home; those days are over. Instead, they will have to wait until you pass away for them to obtain shelter.
Things are scary. Is this a future you want for your kids? I know I want better results for my kids. Therefore, I must position myself to make real estate and investing moves that will ultimately help our family and kids.
Now, more than ever, the power is in housing. People will always need a place to stay, including our kids. I have two homes in Florida and one in Arizona.
I have two kids. At this point, my wife wouldn’t mind living in the RV and letting the kids take over our primary. We are stepping into a minimalist future, which can be tricky after 18 years of marriage.
Retiring to a Small City and Living on Passive Income
Because of the price points, RV, tiny homes, and barnhouse conversions will continue to grow in popularity. As Americans, we are starting to return to what made us great.
We used to have small homes; we bought homes for the size of our family. Somewhere along the line, we began to purchase McMansions that could fit 20 people.
A better future. Will buying a tiny home for your kids make their future brighter? I believe it will. Homebuilders no longer build starter homes because they profit better from bigger homes.
Can you imagine turning 18 and having to save $100,000+ for a down payment on a home? That would be a nightmare; no wonder people say the American dream is dead.
Having a tiny home for your kids will give them the privacy they deserve and allow them to save money while pursuing something they love.
The Information: Passive Income is Your Only Chance
We have all worked jobs we didn’t want to because we had families to support. How can we set our kids up to work the jobs that match their interests?
It’s much easier to find your passion when you have somewhere free or cheap to stay. That’s why we bought the tiny home.
My oldest is in the process of joining the Air Force. He can use the RV when he comes back on leave. If he gets out after six years, he can use the RV as a place to formulate his next plan; it will give him options.
Conclusion. Owning multiple homes is about giving your family options. The more homes, the more options. I know many people fear owning numerous homes.
But what is scarier, dealing with a tenant or watching your kid struggle until you die? I want to see my kids be successful and, more importantly, happy.
Time is Money #3: Invest
No one ever cared about my happiness. I simply joined the military and saluted for 24 years. It was a fantastic time, but rolling into a paid-off house at the conclusion would have been nice.
I am trying to present a different path for my kids. Real estate is perhaps the most vital aspect of our kids’ future—more important than jobs, careers, and education.
But you will have to come to terms with your own priorities. In my belief, kids must be among the top 5% of humans on the planet to purchase a home, save for retirement, and keep their families together.
I can pray for my kids to be elite humans who can sustain the rigors of the workforce, marriage, child-rearing, and finances, or I can help them.
I chose to help them out. That’s why we purchased the tiny home, and we will probably purchase another tiny home as soon as we finish paying this one off. It’s about the future. Good Luck!
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