How a man from Portland transformed a food cart into a tiny home for just $1,000

Portland resident Elijah Ray has turned a former food cart into a fully functional micro home, enabling him to rent out his main house and move closer to his dream of early retirement through passive income.

After working 90-hour weeks for two years, Ray purchased a $333,000, three-bedroom home in early 2023. 

While initially renting out part of the house and living in the attic, he began searching for a tiny home to maximize rental income. 

His search ended unexpectedly when he spotted a food cart on Craigslist.

‘It was so small, I can’t even imagine what they were cooking in there. There was no room for a grill or anything. But I stepped inside and thought, “Yeah, this feels like a home,”‘ he told Realtor.com.

‘I always wanted to live in a tiny house anyway, so I thought, “Yeah, I might as well do this””

With a budget of $1,500, Ray negotiated the cart’s price down to $1,000 — far below the typical $30,000-$60,000 cost of a tiny home.

Over the next year, Ray transformed the cart into a 225-square-foot home. Plumbing was installed by running water from his garden hose, and a $1,060 compost toilet replaced plans for a costly septic tank. 

‘Every professional who tried to figure out a septic tank was like, “That isn’t going to work,”‘ he said. 

For electricity, he uses an extension cord to power appliances such as a fridge, hot plate, space heater and TV, with plans to upgrade to an electrical panel.

Sleeping arrangements posed a challenge until Ray found a $125 3-by-6-foot massage table that fits neatly into the compact space and folds up when not in use.

‘It’s like camping in a way,’ Ray said. 

He initially considered using a roll-up mat for sleeping, but his girlfriend pointed out that his YouTube audience, who follow his micro-home and main house renovation journey, might not appreciate seeing him sleep on the floor.

‘She said I’d look like a homeless person,’ he says with a laugh. 

‘A pink massage table has better aesthetics.’

The project had its ups and downs. A nearby brushfire damaged the micro home, but Ray repaired it with new wood, plumbing, and a fresh coat of paint. 

But shortly after, the $500 8-by-12 greenhouse he set up to store belongings collapsed during a rainstorm, though his possessions were unharmed. 

‘It was my worst fear. I couldn’t fix it, and I’d spent so much money on it,’ Ray says. 

To make matters worse, a shelf holding his Xbox and clothes fell in the middle of the night due to a lack of proper supports.

‘I hadn’t bothered to look for studs because it seemed secure,’ he says.

He took these setbacks in strife, realizing he was going to sell or donate most of his belongings.

‘Moving into a house this tiny has taught me what I really need. I was so attached to things,’ he said, adding that he’s learned to be a lot handier and self sufficient when it comes to installing appliances.

Despite the setbacks, Ray’s efforts are paying off. 

With two tenants renting his main house — a longtime tenant in the studio and his sister soon to move in — he now lives rent-free. 

The micro home cost him just $3,500 to complete, allowing him to save money for his ultimate goal: early retirement. 

‘I always try to remember that I might go through hard times, but there’s a reason I’m doing this. I plan to stack my money and retire early,’ he said. 

Ray shares his journey on YouTube, inspiring others with his creative approach to homeownership and financial independence. 

If you’re in the market for a tiny home without completely DIY-ing it, they can be purchased on Amazon for less money than a standard car.

The two-bedroom mobile home – with an open-plan living room and kitchen, and bathroom including a toilet and shower – costs $19,000.

The pre-fabricated home, mostly made of metal, is framed by a cozy fenced-in porch with stairs leading up to the front door.

It is also equipped with plumbing and electricity, as well as a water heater.

The house, made by Emonia, comes with wind protection, fire protection, earthquake resistance, sun protection and rain and moisture resistance, according to the Amazon listing.

Walmart offers even more cost effective tiny homes. One in particular, the 19-by-20-foot ‘Mobile Expandable Plastic Prefab House’ from Chery Industrial, will cost you $15,900 from Walmart with free shipping.

The same home was listed on Amazon for a lower initial price of $14,999 but with a shipping cost of $4,999.