I lost my tech job and couldn't afford my mortgage. Now I live in a 100-square-foot shed in the yard and rent out my house.

This as-told-to composition is according to a conversation alongside Lauren Patton, 36, who built a small residence in her Texas backyard. The conversation has been edited for dimension and clarity.

After a brace of years of living in Chicago, I decided to move rear to Texas and get a caller start. This was in 2022, whenever the genuine asset market was booming, and homes in Central Texas were getting bought up quickly.

I established a genuine asset delegate on Instagram, and she helped me buy a small bungalow — two bedrooms and concerning 1,000 quadrate feet — for concerning $400,000. I was purchasing alone; it was fair me and my dog.

I had made a extremely small downward fee on my residence and taken out a 30-year mortgage. My monthly payment was concerning $4,000, which was a lot at first, but I idea it was affordable stated my well-paying job.

At the time, I was working in tech and doing really well. I had been moving up the data discipline ladder, and I idea it would be a lucrative field. But I was a bit incorrect concerning that.

In first 2023, there were a bunch of tech layoffs. I established out the day following I got rear from a trip to South Africa that I had been let go. I was stated lone two months of severance and sent on my way.

I could no longer oversee my mortgage

For the archetypal brace of months following I was laid off, I was OK. I took period to relax, spent period alongside my family, and did the things you don't get to do during you're working. Then I started looking for jobs.

I wasn't excellent concerned at first. I thought, "Hey, I was a data discipline manager. I'll be capable to discover something." But following interviewing at many places, nothing was happening.

By then, prosperity was tight. I had extremely small funds and was motionless paying off a lot of credit cardstock debt. I submitted for unemployment, which brought in several money, and started renting out my residence on Airbnb to assistance shield my mortgage.

To create this work, I rented a area for myself throughout town for concerning six months. But whenever my unemployment ran out, I had to commencement crashing on people's couches and driving for Lyft— basically doing any I could.

In 2024, I reached out to a erstwhile chief and asked if I could get my former accounting job back. I did, and during it paid much less than I was making before, it sustained me for a while.

Still, I had no savings, and I had cashed out my 401(k). I was terrified. My home loan was fair so much; I idea my residence was going to go into foreclosure. I was already concerning 30% underwater on the home, and it had depreciated in value, so I motionless didn't desire to sell.

I was 35 and thought, "I can't keep doing this." I knew I needed to do something. That's whenever I came up alongside the idea to build a small construction in my backyard to live in.

I moved out of my residence and into my backyard

I wasn't assured adequate in my woodworking or carpentry skills, so I decided to buy a cabin-style shed kit I established out concerning on Instagram. I took out a debt and bought it for concerning $8,500.

While I was building the shed, I moved rear into my chief home and got a roommate to assistance shield the mortgage. I charged concerning $1,200 a duration for the room. It wasn't a huge part of my home loan payment, but it helped. Looking back, I regret purchasing a two-bedroom house, since there fair aren't adequate bedrooms to rent out.

The shed is concerning 100 quadrate feet, and the kit came alongside stackable timber slats, beams, and big windows, but it didn't contain a rooftop or a floor. I had to build the foundation, too. I additionally added an outhouse alongside an outdoor ablution and built fences and another things about the property.

For the construction, I relied on YouTube and ChatGPT — although ChatGPT certainly led me astray on a few things, particularly the roofing.

I officially completed the build in March 2025, although I've been making adjustments always since — it's never-ending.

Since moving into the shed, I've been renting out my chief residence full-time on Airbnb and have hosted hundreds of guests.

I let Airbnb grip the pricing. On a representative weekend night, I accusation about $200; on a weekday during the academy year, it's nearer to $125.

October is particularly lucrative since of the Austin City Limits music festival. This October, my residence had concerning 96% occupancy, and my income earnings were concerning $6,516.70. That's not normal — occupancy and nightly rates were higher — but Airbnb deducted $619 in assistance fees. I additionally had the residence cleaned seven times for concerning $100 all time.

I put several of the prosperity I earned toward my home loan and bills for the shed — my total electric bill, including the shed and the house, is $550, which additionally includes another utilities.

But overall, Airbnb doesn't shield my complete mortgage, which risen by $400 a duration this twelvemonth since of residence insurance.

Living in the shed has been difficult

It was durable at first, downsizing to a small home. Emotionally, it felt akin I was regressing in life, and physically, it felt really claustrophobic. But I don't intellect it as much now. I'm doing improved mentally.

I have most of what I need in a normal home — a TV, a desk, and a bed. But I have a tiny, itty-bitty fridge, and I don't have ice or operating water, so I have to inventory up on jugs of water.

I've had to study a lot concerning how to live in the space. When I archetypal moved in, I had a portable air conditioner, and the humidity would attain 80%. I'd awaken up soaking wet and think, "What's going on?" I'd never had to regard item akin that before. Now, I run a dehumidifier 24 hours a day.

The hardest part is remembering to keep everything I need on hand, since there's continually one item missing. I'll go to grill poultry and acknowledge I'm out of salt, or that it's rear in the chief house. I'm continually operating out to buy small things, and sometimes I amazement whether it's really financially value it.

Some days, I think, "Man, this is harder than I idea it was going to be."

This has been a difficult lesson

At this point, I've tried exactly everything I can do to keep my residence — I average everything. If things don't get improved in the next brace of years, I'll be comfortable letting it go, since I cognize I tried my hardest.

Looking back, I desire I had done additional investigation as a first-time homebuyer. Aside from a elevated mortgage, my home is additionally akin 100 years old, so it frequently needs repairs. I idea I was helpful and could do it all myself, but it really wears on your soul.

I additionally desire I had idea additional concerning the financial worst-case scenario. You comprehend direction from your parents: Don't let your home loan obtain up too much of your income. I desire I had listened and hadn't gone complete that 30% threshold.

The next period I buy a home, I need to remain under it. I additionally can't be so optimistic. I need to be additional realistic, since this has shifted my existence so much.

A brace of weeks ago, I started posting concerning my layoff and the shed on social media. It's really taken off; I've gained about 12,000 followers on Instagram.

I'm really grateful. Most group have been so awesome and lovely. And during I haven't earned any prosperity from my reels yet, I'm operating on it.

As for a job, I'm currently operating on a data analytics project and am motionless strolling dogs. My earnings from my jobs doesn't shield my mortgage, but I'm fair grateful to have a job at all.

I awareness apologetic for group getting laid off, and I can certainly relate. When I'm rear on my feet and in a improved location financially, I desire to assistance as many group in akin situations as I can.

One day, I'd akin to move rear into the chief home and rent out the shed for a few hundred dollars to person who needs an affordable location to live.