marqzy

GLOBAL TRADE INSIGHTS

Strategic Intelligence for International Commerce

Millennial Builds 3 Tiny Homes, Earns $4,550/Month

Millennial Builds 3 Tiny Homes, Earns $4,550/Month

How a Millennial Homeowner Built 3 Tiny Homes in Her Backyard and Earns $4,550 a Month in Rent

stylish tiny homes

Key Takeaways

  • Building tiny homes or ADUs in your backyard can create extra rental income, like $4,550 a month from just four tenants.
  • Millennials are buying homes more than ever in 2025, with many using smart ideas like backyard builds to make money.
  • Costs for ADUs in places like Portland average $150,000 to $300,000 per unit, but you can save by doing some work yourself.
  • Tiny homes on wheels are easier to set up in some cities because they follow simpler rules, like vehicles.
  • Adding backyard units can boost your home's value by 20-35% and give a return on investment of 8-12% each year.

Introduction

Imagine buying an old, run-down house during a tough time like the pandemic, and then turning it into a way to make good money every month. That's what happened to Emilie Karas, a 38-year-old millennial from Portland, Oregon. She didn't start out as a builder or landlord. She works for the government's employment department. But in early 2020, she bought a six-bedroom house that needed a lot of work. Her plan was simple: fix it up and live there with her wife, Ellie Johnson. Then, things changed when her contractor quit because of COVID-19. Emilie had to learn fast how to manage the project herself. It was hard, but it led to something amazing.

As she worked on the main house, Emilie saw a chance to do more. In 2021, Portland changed its rules to let people add up to two accessory dwelling units (ADUs) and one tiny home on wheels (THOW) on their land. ADUs are small homes in the backyard, sometimes called granny flats or backyard cottages. They can be for family, guests, or renters. Emilie decided to build two ADUs stacked on top of each other and buy a ready-made THOW from Florida. This way, she created three extra living spaces in her quarter-acre backyard.

Why did she do this? Portland has a big housing shortage, like many cities. Rents are high, and people need affordable places to live. Emilie wanted to help with that while also making money. She got help from a local non-profit group that gave her a low-interest loan. In return, she agreed to rent the units at fair prices. Now, she rents to four tenants in total across the three tiny homes. One is a one-bedroom ADU for $1,500 a month, another is a two-bedroom for $1,850, and the THOW for $1,200. That adds up to $4,550 every month, including bills like water and electricity. Plus, she has three roommates in the main house who pay rent too.

This story is inspiring because it shows how normal people can use their backyard and earn extra cash. Emilie spent about $300,000 on the two ADUs, but she saved money by doing much of the inside work herself. If she had hired everyone, it might have cost $500,000. The THOW was cheaper at $60,000, plus a bit for setting it up. A local expert, Kol Peterson, helped with that. He says THOWs are a cheap way to add housing and make money.

But it's not just about the money. Emilie loves living in a community. "I've always lived in community like that. I love it. I think it's really important," she said. Her tenants get safe, nice homes at lower prices than usual. One tenant might be a student or someone starting a new job. The setup creates a friendly vibe on the property. Emilie calls it a "great vibe."

Millennials like Emilie are changing how we think about owning homes. In 2025, more millennials are buying houses than before. The homeownership rate for millennials is around 52% in non-city areas, but only 35% in big cities. They make up 29% of home buyers this year. Many are in their late 30s or early 40s, like Emilie. They face high house prices and student debt, but they're finding clever ways to make it work. Building in the backyard and earning rent is one way to pay off loans faster or save for the future.

This trend is growing because cities are making it easier to build ADUs. In Portland, the rules changed to help with the housing crisis. Other places, like California, have similar laws. For example, in Los Angeles, tiny homes on foundations can be up to 1,200 square feet, but there are size limits based on your lot. Tiny homes on wheels are often treated like RVs, so they're simpler to add.

Emilie's story started with a challenge but turned into success. She had no building experience, but she learned on the job. Now, her property is worth more, and she has steady income. It's like house hacking – living in one part and renting the rest. This can cover your mortgage or even make profit.

If you're a homeowner thinking about this, Emilie's example shows it's possible. You need to check local rules, plan costs, and maybe get help. But the rewards can be big. In this intro, we'll dive deeper into how she did it, the benefits, and tips for you. Let's explore how building in your backyard and earning rent can change your life.

What Are Tiny Homes and ADUs?

Tiny homes are small living spaces, usually under 400 square feet. They can be on foundations or wheels. ADUs are a type of tiny home built on the same land as your main house. They're great for adding space without buying new land.

Types of Backyard Tiny Homes

  • Detached ADUs: Separate buildings in the backyard. Emilie built two stacked ones.
  • Tiny Homes on Wheels (THOWs): Like trailers, easier to move. In Portland, they're treated as vehicles, so fewer rules.
  • Garage Conversions: Turn your garage into living space, cheaper than new builds.

In Emilie's case, the THOW was 8 by 24 feet, fully furnished, and delivered ready to use. This makes them quick to set up.

Why Build Them for Rental?

Building tiny homes in your backyard and earning rent is smart. You can make passive income – money that comes in without much daily work. Emilie earns $4,550 a month from her backyard units. That's like having a part-time job, but from home.

Stats show ADUs can give 8-12% return on investment each year in good areas. Your home's value can go up by 20-35% too. For example, if your house is worth $500,000, adding an ADU might add $100,000-175,000 to its price.

Emilie's Journey: From Novice to Landlord

Emilie bought her house for a fresh start. But when the contractor left, she had to step up. She learned about permits, materials, and workers.

The Building Process

First, she fixed the main house. Then, for the backyard, she planned the ADUs. She hired help for the basics but did painting, flooring, and fittings herself. This saved her $200,000.

For the THOW, it was simpler. She bought it for $60,000 and had it shipped. Kol Peterson installed it for a few thousand more. In Portland, THOWs don't need full building checks because they're like RVs.

Costs Breakdown

  • ADUs: $300,000 total for two.
  • THOW: $60,000 plus setup.
  • Average in Portland: $150,000-300,000 per ADU.

Emilie got a loan from a non-profit to keep rents low. This helped her start without too much debt.

Challenges She Faced

The pandemic was tough. Finding workers was hard. Rules for ADUs take time – permits can cost $6,000-10,000. But she pushed through.

Benefits of Building Tiny Homes in Your Backyard

There are many plus points to this.

Financial Gains

You get rental income. Emilie's $4,550 covers costs and more. Tiny homes cost less to build than big houses. Prefab ones keep prices down.

Property Value Boost

A 2021 study says ADUs can add 35% to your home's value. That's huge when selling.

Helping the Community

It adds affordable housing. In cities with shortages, this helps people find homes.

  • Eco-friendly: Smaller homes use less energy.
  • Flexible: Rent to family or strangers.
  • Low risk: Cheaper than buying another property.

Regulations and How to Get Started

Rules vary by place.

In Portland

You can have two ADUs and one THOW per lot. THOWs must be on residential land with a main house.

In Other Areas

In California, costs are $200,000-400,000 per ADU. Los Angeles allows movable tiny homes as ADUs.

Tips:

  • Check local zoning online.
  • Get permits early.
  • Hire a pro for plans.

Internal links: How to Build Your First ADU, Rental Income Tips for Beginners, Millennial Money Hacks.

External sources: U.S. Department of Housing and Urban Development on ADUs (hud.gov), Business Insider article on Emilie (businessinsider.com).

Similar Stories and Examples

Many others do this.

In Los Angeles, Erica built an ADU for rental income but ended up loving the extra space. In Grants Pass, Oregon, John and Athena added two ADUs to their 1970s home for family and rent.

A Texas tiny home village rents for $450 a month, showing low-cost options.

For stats, like Deere stock example: Investing in ADUs can be like buying stocks. John Deere stock rose 20% in 2025, but ADUs give similar or better ROI with rent. (Expanding on investment comparison for depth.)

Detailed example: Suppose you build an ADU for $200,000. Rent it for $1,500/month ($18,000/year). After costs, net $12,000/year – 6% ROI. Plus value increase. Over 10 years, it pays back.

Practical Tips for Your Own Backyard Project

Start small.

  • Plan your budget: Include permits, materials.
  • Choose type: THOW for quick start.
  • Find tenants: Use apps like Airbnb or local ads.
  • Maintain: Regular checks keep things good.

Bullet points for steps:

  • Research rules.
  • Draw plans.
  • Get funding.
  • Build or buy.
  • Rent out.

Conclusion

Emilie Karas shows how a millennial can build tiny homes in her backyard and earn $4,550 a month. It's about smart use of space, helping others, and making money. With rising millennial homeownership in 2025, this could be your next step.

Call to action: Check your local rules today and start planning. Share your story in the comments or subscribe for more tips!

Citations:

on

No comments:

Post a Comment