I was asked by the 3rd or 4th person if we were in a Money Pit situation with our Tiny House.
The short answer is "no".
The long answer goes something like this:
Paid X for the house
Will invest 20% of the cost of the house to bring it up to the current century bringing the value to 1.2(X) we'll call this R now
House down the street with a similar layout is listed currently at 1.6*(R) so
What you have to understand is the house down the street is the same plan house however extended into the carport (maybe gaining 200sq foot) and done poorly in my opinion AND with horrible carpet and a general need of remodel that WE need in our house - paint, new floor, some small remodels to get it up to par. So THAT would be a money pit!
So, you see... the house down the street in its CURRENT state is still higher than my max investment into this house. I can figure I would double my money after renovations if I were to sell it then... so is it a money pit? Nope. Does it seem like it at times? Heck yeah!! It's a time sucker for sure... and it will take a GREAT outflow of money at the onset. Now did it have to? No, not really. I could have left the stupid kitchen wall in place, spiffed it up, bought a new electric stove (there was no recovering THAT stove), dealt with the lack of plugs in the bathroom and no electricity to add a dishwasher. But, let's face reality, it was LONG overdue for a remodel in most of these areas, it was still stuck firmly in the 60s.
I'm trying to be patient... I'm trying to do things in the right order, choose my contractors wisely. I think I'm there. I'm using Angie's list to get some good folks. I'm now waiting for our general contractor's calendar to clear to get the flooring and drywall done. I've chosen an electrician to do the electrical work... and now negotiating the order of work and the fact that some things just have to be rough in work until we can get the cabinets in place... which has to wait for floors, which has to wait for wall repair, which has to wait for electrical to be completed ... so you can see how things are just snowballs of fun, right? I think I have the order of work down pat now and now to coordinate and schedule and we'll get the party started and the money flowing.... then we'll deal with getting it rented a few times to pay for itself (or become a great tax shelter)