Precious Price, a 26-year-old African American woman from Atlanta, Georgia, went viral after she built a luxury tiny home in the backyard where she lives completely rent-free. To generate income, she rents out the main house.
In 2019, Precious bought a huge 3-bedroom, 1,400-square-foot house in Atlanta, renting out the spare bedrooms for extra income. But when the pandemic hit, the bookings went from few to none at all as no one wanted to share a house with a stranger. That’s when she devised a new plan.
“I stared out the kitchen window into my huge backyard, something clicked: I could use that space to build a tiny home to live in, and fully rent out the main house,” she told CNBC.
Precious proceeded to carry out her plan, starting with obtaining the necessary permits such as building, electrical, and plumbing. She then purchased a shed and hired a local contracting team to do her concrete slab foundation. Nearly 5 months later, her 296-foot home was finished.
The rustic-themed tiny home was able to fit in a daybed that doubles as a couch, a small desk, a full bathroom, a kitchen, and a breakfast nook on the main floor and a queen-sized mattress on the loft. Price added wall mirrors and 8 separate windows to make the space feel bigger.
Precious said she spent about $35,000 on all the structural and material costs. Instead of taking out a bank loan. she put about $20,000 on credit cards and cashed out $8,500 in stocks. She recovered the costs by renting out the tiny house on Airbnb for a few months. She moved in permanently at the start of this year.
“This year, I’m excited to fully experience the tiny home lifestyle for myself. It’s amazing what you can do with a bit of backyard space,” she said.
Precious also says that she has decided to rent out the main house to those who need long-term homes such as local students and low-income workers instead of vacationists. A part of her rental income is then used to cover the monthly associated costs for both homes, allowing her to live completely rent-free.