A26-year-old woman lives in her luxurious little house, built for $35,000 in the backyard - take a look inside!

In2019, I bought a three-bedroom house with an area of1400 square feet in Atlanta, Georgia for $196,000. I decided that I could earn extra income by renting out rooms on Airbnb, especially considering that I travel a lot for work and rarely stay at home.

Unfortunately, in2020 Airbnb bookings ceased. At the beginning of the pandemic, no one wanted to share a home with a stranger. My work trips also came to a halt, so I lived alone in a house that seemed too big.

But in May, when I was looking out the kitchen window at my huge backyard, it clicked in my head: I could use that space to build a tiny house and rent out the main house completely.

Construction process

Before starting construction, I had to obtain building permits, as well as permits for electricity and plumbing from the local city planning office. Then I purchased a shed from Liberty Storage Solutions and hired a local construction team to pour the concrete foundation. The work began in October 2020.

In total, building the little house cost me about $35,000, including the price of the ready-made structure, materials, and labor. Instead of taking out a bank loan, I sold stocks worth $8,500 and spent around $20,000 on credit cards to cover everything. Last year, I was able to pay off that debt.

While the little house was being built, I rented out my main house and rented a room from my neighbor for 300 dollars a month.

Rental income

After completing the construction of the 296-square-foot cottage in March 2021, I immediately rented it out on Airbnb for a few months to recoup my costs. By charging between $89 and $129 per night and $1,300 for a monthly rental, I was able to earn nearly $32,000 in net rental income. In January of this year, I moved into the tiny house to save on living expenses.

Housing expenses

Monthly housing-related expenses amount to:

• Mortgage and property taxes: 1200 dollars
• Electricity: 190 dollars
• Water: 110 dollars
• Internet: 80 dollars

Total: 1580 dollars

All of this is covered by the $2,725 I receive from renting out the main house, which means I can live in the tiny house for free.

Design of a tiny house

I painted the walls light blue and added some elements in a country house style, such as a wooden staircase leading to a double bed in the loft. Under the sleeping loft, there is a small desk where I check my email and do my work.

On the main floor, there is a sofa bed, a full bathroom, a kitchen, and a breakfast nook. Rustic folding doors provide easy privacy. The bathroom has a shelf for extra storage and a glass shower door that makes the room feel more spacious. My favorite place is the kitchen.

Eight separate windows, mirrors on the walls, and a glass shower door make the space feel more spacious. Sometimes I forget that I live in a barn. I had to downsize my wardrobe and shoe collection. But instead of getting rid of clothes that I still want to keep, I store them at a friend's place and periodically swap wardrobes with him. I rarely have guests, but as soon as it gets warmer, I plan to use the fire pit area for parties.

Future plans

Thanks to this house, I have numerous options for using the property, including renting it out and providing housing for myself or elderly family members. I believe that tiny homes will play an important role in addressing the global housing crisis. Last year, I gave a TEDx Talk on how they can help create a sustainable land-sharing economy.

When the weather is nice, a spacious porch is a great place to enjoy the fresh air with a cup of coffee. In 2021, realizing the impact of short-term rentals on the real estate market in Atlanta, I stopped listing my properties for short-term rental on sites like Airbnb. Renting out more vacation space means less room for people who need long-term homes. Since then, I have reduced my portfolio and now rent to students and low-income individuals. My plan is to add an adjoining guest room to the main house to provide even more stable housing. The least favorite part of the house for me is the attic, which has little free space aside from a sleeping area.