***A case study on creating an AirBnb business with mobile tiny homes***

Case Study 01: Tiny Homes 01

Today we will discuss how in 2021 I built a tiny home and used it to generate $20,000 in net annual income. The objective of this study is to understand how one can learn from this to find success for yourself in the short-term rentals industry. We will look at how I was able to raise funds, how I was able to secure a location, how I was able to prepare the location, and how I ensured the profitability of the project.

Background

In 2018 I renovated my first Airbnb space, alongside my father for a small sunroom on his rural property. This was the first time I got experience managing my own renovation project, the first chance I had to implement my design skills, set up an optimized experience for guests, and track the finances of the whole project. After doing this a second time for a very unique studio space I wanted to have my own space and earn my own rental income. The question at hand; how could I do it?

Data from previous builds:

In the first year (2018) the suite earned $1,790 per month after cleaning costs. This was more than the larger cabin space that was also on the same property, which earned $1,595 per month and cost more in utilities and maintenance.

2018:

Suite - $1790/m

Cabin - $1595/m

2019:

Suite - $2114/m

Cabin - $1881/m

2022:

Tiny Home - $2972/m

2023:

Tiny Home - $2622/m

The Challenge

Airbnb, the largest platform for short-term rentals, showcases unique, memorable spaces—treehouses, cabins, countryside retreats—rather than typical homes. To stand out, my tiny home needed to deliver an experience, even with limited investment, no personal property to build on, and complex local regulations. This raised a few critical questions:

What if I built a tiny structure with a $50,000 materials budget?

What if I put it on wheels to allow flexibility?

What if it had off-grid functionality to work in remote areas?

Could I make it my best design yet?

The Approach

First the research; I already had good experience making interesting spaces that could attract guests to remote locations and decent property management solutions, but there was more to learn. How do you fit more in an even smaller space and how do you fit in the utilities? To learn about this I spent the initial stages of the building process living in an RV trailer; I wanted to answer the question “what does a similar currently available solution look like”? The answer was; cold, dark, and tight. My tiny home needed to be the opposite; it would need to feel open, cozy and light. The utilities were loud, obstructive and limited. My tiny home needed to be quiet, cohesive and open.

***Had almost everything***

*The RV was renovated by the previous owner*

With a budget of $50,000, I combined $5,000 from my savings, a $30,000 family loan, and $15,000 in credit. I reduced living costs by staying in an RV on my family’s farm, which also became the site of the tiny home. Upon completion the tiny home did cost a little more than intended, costing me $60,000 in total. Fortunatly I had some income that I was able to use to fund the additional costs as they came. I paid $500 per month to cover utilities and location. To ensure feasibility, I wrote a business plan and project proposal, which projected a net income of $1,870/month.

Finding a suitable location can be challenging. My family’s 100-acre farm was an ideal start, but if this hadn’t been available, I would have sought property through real estate connections and networking events.

***Project Proposal:***

*Full Financial breakdown*

Result

Despite minor challenges during construction, the tiny home was a success. That fall, bookings started strong, even as temperatures dropped, and guests were excited to experience something unique. By winter, the tiny home had a 70% occupancy rate, and by spring, we had achieved Superhost status on Airbnb. In the summer, increased demand allowed us to exceed the anticipated nightly rate, reaching nearly $3,000 per month in peak months.

Conclusion

The tiny home proved to be a profitable venture, demonstrating the potential of small-scale, mobile properties in the short-term rental market. Through thoughtful design, strategic financial planning, and leveraging existing resources, I turned a $60,000 investment into a steady income stream. This experience highlights that, with creativity and careful planning, tiny homes can offer a path to financial independence and even lay the groundwork for future investments in unique rental properties.