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My $3500 Tiny House, Explained

Meet “Timothy”, the new tinyhouse-style conference room at MMM HQ.

One of the nicest new trends of recent years is really the revival and rebranding of something very old: the smaller dwelling.

Over the last few months, I have built just such a structure, and it has turned out to be a rather cool experience. In fact, I’m typing this article for you from within its productive new confines.

Technically, it’s just a fancy shed. But it is functioning as a freestanding office building, a sanctuary, and would even make a pretty fine little dwelling for one person, if you were to squeeze in the necessary plumbing. It’s a joyful place to spend time, and yet it only took a moderate amount of work and less than $3500 of cash to create it.

The experience has been so satisfying and empowering, that it has  reminded me how much we rich folk are overdoing the whole housing thing.

The latest and most distant Las Vegas Suburbs – still expanding (actual screenshot from Google Maps)

For decades, we have been cranking up household size and amenities in response to increasing productivity and wealth. In the 1940s, the typical US household had four people sharing 1000 square feet, or the equivalent of one large garage bay of space per person. Nowadays, new homes average around 2600 square feet and house only three people, which means each person floats around in almost triple the space. We have also started placing these dwellings in bigger expanses of blank grass and/or asphalt, which separate us further from the people and places we like to visit.

The funny part of all this is that we prioritize size over quality. Houses are sold by the square foot and the bedroom and the bathroom, rather than the more important things like how much daylight the windows let in or how well the spaces all fit together. And we settle for the shittiest of locations, buying houses so far from amenities that we depend on a 4000 pound motorized wheelchair just to go pick up a few salad ingredients.

Meanwhile, smaller houses and mobile and manufactured homes have continued to exist, but they have sprouted an undesireable stigma: those things are only for poor people, so if you can afford it you should get yourself a large, detached house.

My Tinyhouse Dreaming

Ever since my teenage years, I have dreamed of casual, communal living. 1992 still ranks as possibly the Best Summer Of My Life, because my brother and I lived a leisurely existence in the utopian garden-and-forest expanse of our Mom’s half acre backyard complete with swimming pool, fire pit, and pop-up tent trailer.

We lived at the center of small, historic town, with very little for teenagers to do in the summer besides find a way to get beer, and find somewhere to drink it so we could play cards and make jokes and if we were really lucky, find romance. And in these conditions, Mum’s backyard came to the rescue of our whole social group.

People would show up in the morning and just linger and come and go all day, swimming in the pool, grilling up lunches and dinners, playing cards at night or watching movies in the impromptu movie theater I had set up in the old detached garage. There were last-minute multi-person sleepovers every weekend. Leftover spicy bratwurst for breakfast cooked over an open fire in the morning. The fond memories from this early-nineties teen utopia live on in all of us*. So naturally, I have wanted to find ways to recreate that carefree feeling ever since.

According to people who actually study this stuff, the key to a really happy community and warmer friendships seems to be unplanned social interactions: you need to run into people unexpectedly every day, and then do fun stuff with them. To facilitate this, you need to live close enough together that you encounter one another when out for your morning stroll. Smaller, cheaper housing is the key to this, as well as a key to spending a lot less money on isolating yourself from potential new friends.

Weecasa resort (image credit Weecasa)

Need a few real-life examples? Right next to me in Lyons, Colorado, someone (I wish it were me!) thought up the idea of creating a resort out of tinyhouses called WeeCasa. Consuming less space than just the parking lot of a normal hotel, they have a beautiful and now highly popular enclave where the rooms rent for $150-$200+ per night.

Two friends of mine just bought a pair of adjoining renovated cabooses (cabeese?) in a Wisconsin beach town, with plans to create the same thing: a combination of a pleasant and walkable lifestyle with fewer material strings attached, and a stream of rental income when they’re not there.

Another friend built her own tiny house on a flat trailer platform, and has since gone on to live in a beautiful downtown neighborhood, both car-free and mortgage-free except for a small parking fee paid for stationing it in her friend’s back driveway. The monetary impact of making such a bold housing move for even a few years of your youth, is big enough to put you ahead for a lifetime.

Even my neighbourhood of “old-town Longmont” has recently inflated to the point of tiny starter home selling for $500k, for the same reason: people really want walkable, sociable places to live and house size is less important than location. While I’m in favor of this philosophy, I’m not in favor of anyone having to spend $500,000 for a shitty, uninsulated, unrenovated house. So we need a greater supply of smaller, closer dwellings to meet this higher demand.

But that’s all big picture stuff. The real story of this article is a small one – a single 120 square foot structure in the back of one of my own properties right here in downtown Longmont, CO. So let’s get down to it.

The Tinyhouse Conference Room

An interior view of our new workspace.

Nearing its one year anniversary, the “MMM-HQ” coworking space has been a lot of fun to run so far. It has been a mixture of quiet workdays, heavy workouts, evening events, and occasional classes and markets. (We have about 55 members and are looking for a few more, so if you happen to live in Longmont click the link above.)

But with only one big room as our indoor space, some members have felt the pinch of needing a quiet place to do longer conference calls or client meetings.  So the plan has always been to build a couple of new spaces, and at last I have one of them mostly finished. And I made a point of documenting the whole process so I could share any ideas and lessons learned with you.

What goes into a Tinyhouse?

As with any big construction project, I started with a spreadsheet of steps and materials.

Here’s the complete list of steps and materials. You can click for viewing or download an .ods version for tweaking.

To save time, I tried to think ahead and get everything in one order **- most lumber shops will do free or cheap delivery on large orders like this.  Of course, I ended up only partially successful and had to go back for missed objects, but I added those to my spreadsheet so your order can be more complete than mine.

At this point, it was just a matter of putting it all together, an effort which took me about 120 hours (three standard weeks) of work, spread out very casually over the past three months. Most of the work is standard house framing stuff, but just for fun we can step through it in rapidfire style right here.

The Super Simple Insulated Floor

Normally when building a small house, you’d dig a hole and pour a reinforced slab of concrete, as I did for the larger and fancier studio building at my main house. But in this case, the goal was fast, cheap and simple. So I just raked out a level patch of crushed gravel, compacted it with my rusty homemade welded compactor tool (“La Cruz”), and then started laying out pressure treated 2×6 lumber.

Here’s the 12×10 floor platform. Note the little support rails which allowed me to tightly fit in the foil-coated foam insulation between the joists. Most joints are done with simple 3.25″ galvanized framing nails, but I added Simpson corner brackets on the insides of the outermost joists for more strength.

Framing

Once I had those floor joists super square and level (hammering in stone shims under corners and joists as needed), I added a layer of standard 3/4″ OSB subfloor and nailed it down judiciously with the framing nailer to ensure a very rigid base. Then started to make the walls.

I used the floor as a convenient work platform for building the four walls. I built them flat and even added the 1/2″ exterior sheathing in advance, then tilted them up with the help of a friend or two. This method makes for heavier lifting but higher quality, because you get a perfectly straight and square wall almost guaranteed. Plus, it saves time because sheathing is a fussier job to do on an already-installed wall.

Once all four walls were set up and locked in place, I created the roof frame, which is really just a rather large wall. I did this on the ground, but had to compromise and skip the pre-sheathing step even though it would yield better quality, because we needed to keep it light enough to lift. If I had really strong friends or a telescoping forklift like real framing companies have, doing it all on the ground would have been a big win.

Framing and roofing.

A Metal Roof (of course)

I wanted a relatively flat-looking roof, so I cut wedge-shaped 2x4s and nailed them to the tops of the roof rafters before adding sheathing. This results in a slope of only 2%, but with a careful underlayment job and the seamless nature of metal roof sheets when compared to shingles, I have found it is nicely watertight. If in doubt, you can add more slope or use a rubber EPDM roof. The other advantages of metal: longer lifespan, lighter weight, and better protection from summer heat.

Insulation and Siding

Various wall layers revealed, insulation, lights, super frugal wood floor!

On top of those handy pre-sheathed walls,  I added 1″ foil-covered foamboard, then some stained cedar fenceboards to create the reddish exterior you see in these pictures. Although the cedar gets quite a few compliments, it was an experiment I wouldn’t repeat: the boards expand and contract in changing weather and leave visible gaps at times. Next time, I’ll use more wavy metal siding, or something prefinished with an interlocking tongue and groove profile.

Electrical was done exactly the same way you’d wire up a normal house, with outlets and switches in AC Romex-style wiring. But on a tinyhouse like this, you might choose to have it all terminate at a male outdoor receptacle on an exterior wall like an RV or camp trailer, so you can run the whole thing from a good extension cord.

Insulation was just basic batts in this case, but you can use spray foam for even better performance.  I drywalled everything using standard 1/2″ “lightrock” wallboard, hoping to keep the structure weight down in general, in case this thing ever needs to be moved with a forklift.

For lighting, I used these LED lights I found at Amazon at $4.20 per fixture.

The bare drywall stage – one of so much promise.

The Final Touches – Interior Trim, Furniture and Climate Control

At this stage in the construction story, I had something that looked like any other ready-to-finish example of modern house construction, and it was such a happy and familiar feeling. It’s a blank canvas but also a very solid one upon which you can create anything – an office, a bedroom, music studio, living room. Or if you’ve got the pipes for it, a kitchen or even a bathroom with a fancy shower.

Normally by this stage in building a house, you’ve spent at least $100 per square foot, so you can imagine the pleasantly Mustachian feeling I got when I arrived here at about $22.

So to keep the frugal trend going with the floor, I decided to try just smooth sanding the raw OSB with a good belt sander and clearcoating it with this really tough floor urethane. It came out looking pleasant, and is very durable and mud/gravel resistant. But I found the sanding was a slow process – throwing in a basic but attractive engineered wood floor at under $2 per square foot is probably a better idea next time at only slightly higher cost, unless you are building a big enough space to justify renting a real floor sander.

I made my own trim and window jambs by buying three 4×8 sheets of 3/4″ MDF and slicing them up on the table saw. Like the floor, this adds a bit of labor, but the benefit is you can get nice beefy trim in whatever dimensions you like (and even throw in some matching custom shelving and built-in cabinetry!) and save a couple hundred dollars per room.

The portable air conditioner occupies only one shelf.

For furniture, I picked out a mixture of stuff I already had, an Ikea desk frame from Craigslist, and a nifty chairside table from a local big box store.

Finally, I added some simple but effective climate control by just throwing a low cost portable AC from amazon up on the shelf (it vents through a 6″ hole I cut to the exterior). In the winter, I’ll just stash that little air conditioner somewhere and replace it with a silent oil-filled electric radiator for heat.

By plugging either of these machines into a wifi-controlled electrical outlet, I can even control the heating and cooling from anywhere using an app on my phone, as I already do for the various patio lights and ventilation fans I have in my life.

So do YOU want a Tiny House?

The real point of this article is just to share the idea that small structures can be very useful for many things. They are quicker and cheaper than creating a traditional house or building an addition onto one. They may allow you to have a guest house or home office or even an AirBnb rental in space that was formerly just a water-sucking part of your back lawn. Many cities allow you to place small things like this in your yard without requiring a building permit. And if you have the skills to build these things, you can even create an instantly profitable business cranking them out to satisfy the strong demand.

As for me, I’m hooked – later this year I’ll build a second one of these things here at MMM-HQ. And perhaps I’ll even get a chance to help someone build yet another in a tropical seaside location this winter, as part of my ongoing “Carpentourism” habit.

Happy downsizing!

*except my Mum, who still regrets letting so many teenagers run free and attract the ire of the older neighbors and occasionally the police department. Sorry Mom..  but also, thank you so much!

** I also took advantage of the large chunk of spending for a tiny bit of “travel hacking“, picking up an Amex Platinum card that gives me about $1000 of cash/travel credits only if I can spend $5000 within the first three months. For travel hackers, timing the acquisition of a new rewards card to coincide with a chunk of planned spending can be a useful way to squeeze the travel budget into an existing renovation budget.

 

 

  • Kanika November 12, 2018, 2:13 am

    Hey, I really enjoyed ur posts and this idea about a small house sounds so interesting. I am from Delhi, India.
    I would like to know more about security from burglary and insulation from heat outside. I wish you could do some research and teach people from outside USA about how they can live in a tiny house like yours.

    Reply
  • Silvia November 13, 2018, 7:13 am

    We’re thinking about building an apartment over our carport to rent out. Can anyone recommend plans that would include a bathroom and minimal kitchen? I like the mini-split idea mentioned above.

    Reply
    • megan April 15, 2019, 5:05 pm

      Have you made any progress? We are currently re-designing our carport as a studio apartment. It’s only 200 feet but surprisingly enough room for a MMM style luxurious bathroom and plentiful living space!

      Reply
  • Edward Flowers November 28, 2018, 2:05 pm

    Excuse me if this was already mentioned in other comments.

    Dude!
    You can’t have that air conditioning unit on the top shelf. It’s too top heavy. At the very least, secure the shelving unit to the wall. Other than that. Looks awesome!

    Reply
    • Mr. Money Mustache November 29, 2018, 3:12 pm

      Nah, it’s fine, not too wobbly.

      Although if there were toddlers playing in there unsupervised, I would agree you I should bolt it in (as well as covering the plugs and removing all the computer equipment – which would make it useless as an office so we just avoid unsupervised toddlers instead :-))

      Reply
  • Barb March 5, 2019, 12:06 am

    Okay, I’ll try and keep this short…but this article touches on so many topics I’m passionate about, that might be difficult. :)
    Back I the mid ’90s, I attended a book release by Ernest Callenbach for “Living Cheaply With Style” which I highly recommend for your reading list, especially for those new to frugal living). He briefly mentioned communal living as a way to live on less, but it didn’t stick with me until…
    I went to the local alt bookstore to buy his newly released book, only you find it sold out. While searching the stacks, a book literally fell onto my head titled “The Directory of Intentional Communities.”
    I flipped through, bought it, read it cover to cover, then proceeded to wrangle my housemate to go on a tour of communes with me. We visited 49 rural intentional communities (there are hundreds, internationally, listed in the book and at ic.org) in one year (we each saved up $2,000 to pay for gas and travel food for the year).
    AMAZING to experience an alternative ways of being, in the world (I’d just graduated with a major in fine art, minor in business, so I qualified for day shift at ANY fast food establishment…)
    Fast forward: I did some stints at various amazing communes over the years, and ended up buying 46 acres in Oregon. I work from home, for a publishing company promoting art and writing by women (We’Moon), which I LOVE, and would do without pay (don’t tell my boss). We use the main house houses for the office, big kitchen and bathing facilities: 1200 sq’ total
    Since I’m an extroverted introvert, I needed a place of my own ( this place seems to be always filled up with peeps!), so I (along with about 20 volunteers from WWOOF) built a two storey cob cottage (off grid solar, gravity feed spring water) about 300sq’.
    A previous land mate had built a similar structure that I helped with, and has subsequently abandoned ship for true love (go figure..lol). Plus, in the early days, we “easily” updated a tiny horse barn into a human barn ( a 159sq’ cabin). PLUS a friend needed a place for her 1972 converted school bus to live…so now we have 5 living spaces in the land! How’d that happen?!
    Anyway, the school bus (Esmerelda) and the x-landmate’s cob house (The Nest) are both Air BnB rentals, the x-horse shelter (about 200sq’) houses our geoarbitrage buddy when Mexican summers get too hot, and various other friend when in need of space in the meantime.
    Each of the cob structures cost about $7k, not including solar panels and batteries. They each took about 2 years (minus winters…brrrr) to build….and they each weigh about 60 tons. Can you spell FREE GYM?! Yes, we carried, not once, not twice, but three times the weight of the structure over the course of building.
    So, I guess the moral is to do what you love, and the bliss will follow.
    Thank you for the ideas and encouragement. More bliss, on the way!

    Reply
  • Tamra L Fakhoorian August 25, 2019, 4:35 pm

    Loved your simple directions.40 years ago I lived in a 160 ft repurposed shed in Iowa for a year. Had an upright piano, a bunk bed, kitchen, and skylight. Was one of the happiest years of my life. Fast forward to now- 48 sq ft in a semi. Love it. Designing a micro home for retirement. Small is beautiful.

    Reply
  • Ryan March 7, 2020, 10:47 am

    Taking things back a step and looking at the purchase of land upon which to build a small structure (for an eventual combination of personal use and AirBnB income) vs. leaving the money sitting in low MER index funds, I’d love to know how you go about deciding between the two options.

    As far as I can tell, it comes down to assessing the two options based on some kind of risk / reward / lifestyle benefits criteria.

    Leaving the cash invested offers low-risk peace-of-mind, modest annual returns and compounding growth.

    Taking out all of that money and buying the land, then building a small structure obliterates the nest egg and consumes significant time and energy before showing ROI (although there is the entertainment value of being pumped about the new project!). Though once the new building is up and running on AirBnB it should outperform the index funds fairly handily while simultaneously providing lifestyle benefits (we can use it when not booked). Another factor is running an AirBnB rental takes far more effort than sitting back and watching the index funds grow.

    Providing the land is purchased for a good price, there should also be significant value added to the property once it has been built upon. In my mind, this helps protect against losses should the need arise to sell (assuming we actually finish construction without unforeseen misfortune). Depending on market conditions, it might even turn out to be a better overall investment than the index funds scenario. Though of course, it could also be catastrophic. Land is purchased, then the real-estate market plummets and unforeseen calamity leads to selling at a dramatic loss. But that’s the risk anytime real-estate is purchased.

    General question for the MMM horde: Are there any glaring omissions from my thinking? Thanks in advance!

    Reply
    • Chuck Albacore May 7, 2020, 6:14 am

      To answer your question about glaring omissions:
      What about fun, happiness and life in general? If your only goal is to grow your fund as safely as possible, then you should sell the computer you’re reading this on (and everything else you possibly can). Live in a tent or crash with friends, eat rice and beans (or free food) and basically stop “living” (IMHO). You WILL DIE at some point, so figure out the balance between life and living and you’ll see that the satisfaction, quality of life, etc. etc that comes from making something like this structure is a great ROI.
      You’re right though – the actual money would best be spent on VTSAX and allowed to sit for many generations, untouched. That’s the “secret” to making trillion$ – don’t spend a dime and let it all compound.
      I think MMM would agree though that along the path between birth and death should be lots of friends, good food, a sense of immediate accomplishment (well, a time line of less than 80 years!) and the pleasure of enjoying your health and physicality.
      Ignoring any of those is a glaring omission.
      :)

      Reply

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