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I've been throwing around a lot of ideas regarding buying a house. One idea I've thought of is to buy land with cash and build a 480 sq ft house on it which I could also pay cash for. Later on, when I have more money, I would build a full size house on the land. I know tiny houses don't really appreciate much but in this situation I would never sell it by itself, it would eventually just be an extra living space on my land that I could potentially rent out part time or full time.

I'm estimating the cost of the land plus the house to be around 50k. In the area where I live (Southern Indiana), any house that I could buy with that much money is in terrible condition and would probably be in a downtown area with no land or far out in the country.

I'm currently single, no kids, bringing home around 40k a year.

Just looking for thoughts on whether or not this would be wise in the long run.

Thanks!
 

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What about building a double garage and living in that till you can build your house? Using an open floor plan would cut construction costs and make converting to a garage cheaper and easier when the time comes. That way, you end up with a garage you need anyway and aren't spending money on a building you won't have a use for.
 

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I feel like it could still be worthwhile even if the house does not have any resale value.

Say for example that you use it for 5 years for getting a regular house built. Would it be cheaper than paying for rent for 5 years? I have no idea how much rent is where you live.

For this you would not count the amount for the land, just the tiny house.

I do agree with Spirit Dear that having an open floor plan might give it more usability latter on. Basically it could be like a studio apartment. No walls between front room, dining room and kitchen. Just a separate bathroom.

This might just be me, but I feel like I would rather have a studio apartment than three really tiny rooms for kitchen, front room and bedroom.

Later, it could be used as a guest room or a room for a teenager. I feel like there are lots of hobbies where it would be nice to have room with a sink available. It could be a good room for someone who had a noisy hobby or room for someone to practice a musical instrument.
 

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I like your idea of renting out the tiny house once you have your full house built and you could take your time building your house and maybe pay cash as you go.
 
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