Tiny House Technology as Income Property Asset for Retiree Senior Citizen

It was Toshi Ghalebi, an engineer and an inventor based in Indio, a city in Riverside County, Southern California, founder of Fast Dwellings, who developed a solution for senior citizens to afford retirement and help them come out from the negative impact of falling incomes and reserve mortgage liabilities against their monthly pensions.

Some facts:

According to the National Council on Aging, “Today, more seniors are carrying debt into retirement more than ever before, and the amount of debt burden has skyrocketed over the past decade. For many, just keeping pace with the cost of daily living is a challenge.” There are much better options than reverse mortgages.
According to academic research, The number of homeowners over 60 were three times more likely to have a mortgage in 2015 than they were in 1980.
Citing U.S. Census data, the study also asserts that the number of households 65 and older with a mortgage grew 39% in the last 15 years.
Healthy retirees today can often expect to live well into their eighties or nineties, instead of dying in their sixties or seventies.
According to annual retiree health care cost estimate, “a 65-year-old couple retiring in 2018 would need $280,000 to cover health care expenses during retirement, a 75% increase from the 2002 estimate of $160,000”

As an inventor and engineer, Toshi Ghalebi recognizes the scalability of Accessory Dwelling Units (ADUs) as living space for possible transient tenant/s. It can help augment income for senior-homeowners and attain a better-retired life.

But he also recognized though ADU is an excellent idea. The current running average price to construct an ADU is at $350-$450 per square foot in more expensive areas, not including the cost of adding basic living amenities and furnishings. For retired seniors living on pensions with no savings, the possibility of investing in ADUs within their properties is remote or close to impossible.

Now, even if our senior citizens can afford it, assuming they found a way, consider the lengthy, unpredictable, sometimes messy and painful dealing with General Contractors, not to mention the spanning qualification, testing, planning, constructing and complying with permitting and building policies. The idea for them to undergo such a process is a turn-off. All these things negate the potential of ADU’s to help seniors citizens out of strenuous financial predicament.

As a solution, Engr. Toshi developed the Pads. Its modular construction prefabricated units, are built off-site and pieced together at the job site or homestead. It can be assembled by a handyman in hours.

Engr. Toshi Ghalebi Pads temporary to permanent TINY HOUSE AS INCOME ASSET, are designed as user-friendly, homey and it's easy to own. It can accommodate transient backpackers, couch-surfer to permanent residence tenants. These PADS form as a dwelling space is a perfect passive income opportunity for the senior-homeowners, while still in mind privacy and safety.

Rather than allowing renters to rent vacant rooms inside the house, proper proximity makes it a safe way of allowing renters within their property, yet still outside the premise.

and feasibility of the ADU modular system like the Pads.

According to the United States Census, Fresno has a 1% population growth rate in the last three years. July 2018 survey says this county has 994,400 estimated population, 37,686 are Veterans, 46.9% Rate of Home Ownership and the home-owners vacancy rate is as low as 0.9%.

Fresno a job market increase by 2.0% over the last year. Future job growth over the next ten years is predicted to be 32.9%. The average income of a Fresno resident is $19,226, and the median household income is $41,455 per year.

These numbers are indicators of why rent demand is increasing according to an analyst of apartment rental properties Because very few properties are for sale, and if it is in the market an average income earner can't afford to purchase, the need to rent is the next recourse.

Housing experts say, despite Fresno's steady local economy, job market increase and future job growth projection, the county is not meeting its housing demand, and building development to prepare for the next 10 years is not even underway.

"If there are new developments it's probably because the builder got a tax credit deal or the development is for seniors. Income is not high enough to make the cost of project work for some builders. There’s a huge demand and it’s unmet”. Robin Kane, Fresno Multifamily Expert.

Therefore, the ADU modular system is something lucrative as passive income for senior-property owners given all data above.

If a 102 sq.ft Pad staring cost is $11,999 and add shower and comfort room cost for tenants at $4000, for FRESNO county based on size, a Senior Pad Homeowner, typically, earnings can be between $550 to $650 rental income per month. If so, the Return of Investment (ROI) will only take 24 to 36 months.

The good news is seniors owning single-family homes with a backyard can leverage underutilized space to immediately augment their income, without a huge debt burden and immediate returns.