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FEATURED! Possible Blue Ocean? Affordable "tiny" housing park

Discussion in 'Real Estate Investing' started by MJ DeMarco, Jul 26, 2018.

  1. NaPal
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    NaPal Done > Perfect Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass

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    In my area the smallest new home you'll find is around ~2000 sqft.
    Since I've known this, I've always thought there has to be a huge market for smaller new construction homes. Something along the lines of 2BR, 1 BA, +loft, 1000 sqft.
     
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    I think this is definitely a possible blue ocean... The only thing you'd be competing with are other housing parks, but as tinyhousing park it's a big differentiator and kind of different business altogether. I think the next step would be figuring out how to test if this is something people are genuinely looking for... You could create some kind of smoke and mirrors test, create some targeted Facebook ads saying "Live in A Tiny Home Community Today" and see how many click-throughs you get. If a ton of people go through the link, that would be pretty good validation to me!
     
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    You can always see the work we try to pitch to clients (as an example of something that's definitely NOT a Blue Ocean, haha) here: Work - Midwest Immersive
     
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    Never read the Blue Ocean book but have also had the idea of a green housing gated community (off grid, growing own food etc). So I also like this spin esp tying it in with the tiny house trend.
    Don't know if I would pitch to the low income/mobile home market...as someone pointed out..security risks and may end up not being a great vibe if some of the wrong people move in.
    The 55+ mentioned here is a good angle. Mine would be to pitch it more as an alternative lifestyle community to young 'hipsters' (sorry for the horrible labels) who share common values of minimalism, high quality lifestyle over big house and mortgage. So, they may be ok with paying more than a trailer park rate to know that they would be among like minded people (educated and alternative). They may also be less fussy than the over 55 crowd in terms of demanding comforts and be less of a liability.
    Could leasing/selling the units as cabins/holiday homes help to bypass construction codes?
     
  5. JunkBoxJoey_JBJ
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    Option A:

    MOVE IN - FL Tiny Home Park Grand Opening!!!

    HOA Rules:

    *You've read TMF & UNSCRIPTED
    *You are in "hybrid" transition to FL
    *You downsized here to get grip on your overspending/scripted life
    *You sold your big house
    *You have to have a CENTS business or start one after moving in

    Property and Grounds:

    *There is a FL Club House with a shared workspace for creative ideas and woking together; must show up everyday until you create your level of FL and return to the property and help others after you have "moved" out.

    *There is a HOA (gate - INSIDER) cost, but the cost is minimal to the rewards you gather when you take action.

    Option B:

    ...OR just create a FORUM and live where you want ; )

    So, does the Tiny House Blue Ocean already exist?

     
  6. Rabby
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    Rabby Silver Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass

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    I like it. I looked at the codes for my county, and I could build a 500sf tiny home and still meet the space requirements for 2 adults and a child (600 might be more reasonable considering kitchen space etc). To keep the adults sane, perhaps you build them on slightly large lots compared to the tiny houses, so the kids can be tossed out to play. Have a lodge / town hall type building and some shared executive suites that are part of the HOA/condo dues? I don't know if I would live in one year round, but I would at least stay in one.

    One aesthetic concern... what does it look like when someone parks an F250 with a boat trailer next to the tiny house? Or a pickup plus a mini-van? Can you even see the tiny house? Parking or vehicle storage, and ingress and egress are worth some extra thought, considering that vehicles could take up comparatively more space in a "tiny house" neighborhood.

    Also, I love Blue Ocean Strategy.
     
    Last edited: Sep 5, 2018
  7. Lex DeVille
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    It might be worth looking into 3D printed housing at this point rather than building small houses because they're inexpensive. Even if you're set on tiny houses then 3D printing still might cut costs. Not sure if you can buy these yet. Maybe a Kickstarter project?

     
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    I'll pay admission to watch them 3D printing houses... that's a bit of funding right there :)
     
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  10. MJ DeMarco
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    I guess I don't understand - why not build tiny condos. You get the same square footage, get some designer to make it all eco friendly or some such nonsense, but a lot more doors per acre, making it more afforsable
     
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    I follow this type of stuff on youtube. There's a community in Palm Springs that is converting/converted their trailer park into the tiny home model.



    What's funny is that in order to build their tiny home models at scale, the only companies that can handle their demand are manufactured home builders. So they made some tweaks to the manufactured home models such as a nicer porch/deck etc.

    I personally think manufactured homes are such great living options considering the price, it's the other stuff like the lot/community/stigma that prevents people from taking advantage of living there. As well as cities and municipalities giving the permits and OKs to build "trailer parks".

    But the actual structure of a tiny home versus a manufactured home is not much different other than the rebranding. Tiny homes used to be 150-300 sq ft homes that you can make on a mobile trailer. But people are finding that it's too small. So in the example above they have the "Parks Model" tiny homes which are around 400 sq ft with a base price of $4x,xxx.

    There's no difference in the actual building, it's the community and the rebranding that's important to make sure that you do not INCREASE the crime and drug rates when you lower housing costs.


    One option I thought of is to build these on a lot and to require a substantial security deposit if you bring your own home ($20,000 or higher).. OR you must buy the homes in CASH. No financing.

    This could eliminate any drug dealer or junkie or criminals because of the affordable monthly pricing due to the low cost of the homes. They could and WILL attract bad tenants.

    But if your lot requires people to pay for the homes all in cash, it artificially raises the type of income and finance requirements which in theory would raise tenant quality.

    Other options explored would be...
    - HOA
    - Strong community guidelines , etc.
    - gated


    But having worked in organizations where preserving and maintaining culture was a big deal, it's all about the branding and the ideals of who you recruit that preserves the community, not necessarily money.
     
  13. LittleWolfie
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    They are already in use in Russia


    Some German pre-fabs indistinguishable form site built houses.

    prefab house germany - Google Search
     
  14. ChrisV
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    Honestly, I would be all over this. I think it’s a great idea. Dude, there’s part of me that just wants to sell everything and just go live on a Sailboat.

    I seriously looked into getting an RV for a while and just doing whatever.. i just wouldn’t know where to park it and the legalities of that.

    This rent crap is for the birds. It’s just a place to keep a bunch of shit I don’t need next to people I don’t like.
     
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    Taking a old, crappy MHP, bulldozing the trailers and replacing with a tiny house community is one of my 3 year strategies.

    Me and a friend are looking into it, the biggest issue being funding 50-100 tiny homes in one go. The cost of terrible MHPs isn't bad, evicting everyone to start fresh isn't bad, it's just the cost and figuring out 100% compliance within state law.
     
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    Also one of the things we've been REALLY looking at are tiny-condos built on singlewide/mobile friends. The cost on a 2br/1ba duplex-style singlewide with garage & semi-private yard is absurdly low. The issue right now is hammering solid pricing with a mobile home rep (And of course the money needed).
     
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    Long term hold or develop and sell?
     
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    @MJ DeMarco
    I tried to read as much of the thread as I could. But what about good ol' apartments? The amount of materials needed to build a tiny home vs an apartment is impressively higher isn't it? As far as turning this into an entire lot project, this idea is actually being considered by the city in our area to have them write new license and approval for tiny homes on actual lots.
    I worked with methodhomes and they normally build high end modular prefab homes that cost millions.
    However, in 2015 the MakeItRight foundation was building very cheap and sustainable homes that we were a part of. I think we were able to knock out 30 of these units under 10 months for the natives in Wyoming and no they weren't the ones in Kansas that were defective lol.
     

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