expect in a well-appointed Jr Suite in a hotel. There is a living area, kitchen, bathroom and bedroom. These fun hotel-suite sized stand-alone homes rent for hundreds of dollars a night and are professionally managed. With the advanced building materials utilized by manufacturers like the publicly traded Colorado company, Sprout Tiny Homes (OTCQB: STHI), these homes last decades and can be set on trailers, foundations, or even be built on-site. With such a low-acquisition cost, a tiny home purchased for recreational leasing can generate immediate positive cashflow and be a fun investment to manage. WORKFORCEHOUSING Seasonal operation industries like mining, drilling, and construction have a need for safe lodging for their workforce. With the increase in demand for privacy, old fashioned “bunk houses” do not work. Tents are inappropriate and hotel stays drain profitability. Tiny homes currently are filling the need in seasonal workforce housing starting at $50,000. There are towns across the U.S. that have land that can be dedicated to workforce housing, but due to zoning restrictions, apartment complexes and hotels cannot be built. Tiny homes are easily able to fill this housing void. As real estate investors, partnering with companies like the Aspen Ski company or any of the oil or lumber companies would allow one to solve the workforce dilemma
solving homelessness, tiny homes can be rapidly manufactured and installed to provide safe and clean housing for those less fortunate. These homes can be manufactured for minimal investments and paid for with government grants and contracts. By manufacturing these homes in factories, the cost of construction is greatly decreased as most prevailing wage requirements are not applicable, which increases profitability over typical “stick build” small homeless housing complexes that have been more recently proposed. Necessity has always been the mother of invention, and in real estate, the necessity for higher profits has driven innovation and continues to drive it. Tiny homes, while not yet mainstream, are higher profit- producing, investment-returning vehicles (literally, sometimes) and deserve a second look. •
while ensuring a strong profit by providing inexpensive tiny home housing.
AFFORDABLEHOUSING DEVELOPMENTS Some cities and counties
are hesitant to allow what they deem “trailers” (tiny homes) to be permanently placed for living. However, the building and management of apartment complexes are becoming increasingly difficult to finance. Without much red tape slowdown, an otherwise overlooked piece of land can become a trendy tiny home community. In today’s market where the lack of affordable housing plagues many people in dense urban areas and sprawling suburbia, tiny homes, and other energy- efficient home developments can be the answer. With the speed of manufacturing tiny homes, an entire community can exist in the matter of months, not years.
Joseph Johnson is a licensed California attorney who holds JD and MBA. He is the CEO of Sprout Tiny Homes, Inc., a publicly traded company. (OTCQB: STHI)
HOMELESS HOUSING With certain states, like California, dedicating billions of dollars to
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