How to Create the Best Tiny House in Los Angeles

Ever look around your house and think, how did I end up with all this stuff? Maybe you’ve been looking for ways to live more simply and aren’t sure how to get started. Or, perhaps you are an empty nester and simply don’t need as much room as you used to with a larger family. Now that it’s just the two of you, do you really need that 3- or 4-bedroom house? 

Or, maybe you’re looking for ways to help with the historic housing crunch in Los Angeles.

If you are looking for ways to live more simply, a tiny house may be just the thing! You can construct one on your own property or even have a tiny home on wheels and take your abode with you on the road. 

What is a tiny house in Los Angeles?

In general, any home that is less than 1,000 square feet is considered a tiny home. If that home is built on a foundation on your property, it is considered to be an accessory dwelling unit, or ADU. These types of tiny homes must have a bathroom, kitchen and living space that is separate from the main home on your property. Also called a granny flat, these structures can be rented out by the homeowner. Or, as a homeowner looking to downsize, you may decide to move into the tiny home yourself and rent out your main home.

What is a tiny home on wheels in Los Angeles?

Tiny homes on wheels are now also legal in the city of Los Angeles. That way you can keep your tiny home on your property, or take it out for a spin, if you so choose. If you choose to build a tiny home on wheels, it must follow certain parameters. A tiny home on wheels:

• Must NOT be able to be moved under its own power. AKA...it can’t have a motor in it. That would be a motorhome.

• Has to be registered with the DMV

• Must meet national standards for fire protections

• Must NOT be larger than California highways

• Must measure between 150 and 430 square feet, as measured from the exterior faces of the exterior walls.

When installing a tiny house on wheels, make sure you follow all the ordinances set forth by the city of Los Angeles. This will ensure that your tiny home on wheels is up to code. Any tiny home on wheels must comply with the following:

• There can be only ONE tiny home on wheels on your lot.

• The undercarriage must be hidden from view while it is parked on your lot.

• The wheels and leveling supports must sit on a paved surface.

• All the mechanical equipment must be incorporated into the tiny home, with none of it showing on the roof of the structure.

• It needs to be connected to water, sewer and electrical.

• The tiny home cannot be more than two stories high.

• The outside of the home cannot be made of laminates, single piece composites or interlocking metal sheathing. In other words, it shouldn’t look like an RV. In addition, it can’t have any slide-outs, like some RVs have. Remember, this is a tiny HOME, not an RV.

• The tiny home needs to have double pane windows with outside trim.

In addition, these tiny homes do not need addresses of their own and don’t need to have sprinklers installed.

Why have a moveable tiny home when I could have a mobile home?

While it’s true that mobile tiny homes are more expensive than a mobile home, there are many reasons why you may want to invest in a tiny home on wheels instead of a traditional mobile home. For one thing, moveable tiny homes are more durable than mobile homes and have better resale value. And while mobile homes tend to be a little roomier and affordable, they also tend to be less self-sufficient than tiny homes. Tiny homes also tend to be more eco-friendly and have more variety in designs. You can have a far more modern looking tiny home on wheels. 

I’m sold! How much does a tiny house cost?

The cost of a tiny home is going to depend on many factors. If you are going to build a more traditional, ADU-type tiny home which is built on a foundation on your property, you are going to pay between $85,000 to $120,000. Factors that could affect price include:

• Is this new construction, or a converted garage?

• How complex is your design?

• What kind of materials are you using?

• Are you planning on separating the utilities from the main house?

• Are you building a traditional tiny home from the ground up, or are you going to invest in a more affordable, prefabricated home?

If you decide to go in for a tiny home on wheels, it is going to be more cost effective. Many people decide to build their own tiny homes on wheels. But if you are not much of a DIYer, you can purchase premade tiny homes on wheels. Those types of tiny homes usually run about $20,000 for a small and very basic unit. Larger, more luxurious tiny homes on wheels built by a professional can run you all the way up to $120,000 or more!

How do I pay for my tiny house in Los Angeles?

Wondering how to pay for a tiny home? In many cases, banks will approve loans for a more traditional tiny home -- one built on a foundation on your property. There are a couple of ways to pay for it if you don’t happen to have $85,000 to $120,00 lying around. 

One option is to get a Home Equity Line of Credit. This works well if you have equity in your home. That is, you have paid off some of your actual mortgage. You can borrow against that to build your tiny home. You can also get a construction loan. Many lenders provide mortgages that cover up to 80% or 85% of a remodeled home's value. Finally, now that rates are at historic lows, you may want to think about getting a cash-out refinance. Basically, you refinance your home at a lower rate, but at a higher mortgage and use the surplus cash to pay for your project. 

There are many considerations to take into account when deciding to build a tiny home on your property. In the end, the extra income it can generate and the added value to your home, or just the simplicity of your life, can make a tiny home a great choice.

If you want to convert your garage or build a tiny home on your property and need help funding your project, give us a call. Our lending professionals have the experience and know-how to get you into an ADU/garage conversion today! Call the experts at Granny Flats Design at 818-532-0482.