Man buys a shed, converts it into a luxury tiny home, and now rents it out for passive income

People have experienced the allure of owning a piece of land for private use, imagining endless possibilities and cherished moments.

When they find their parcel remains untouched, mostly collecting dust and unfulfilled dreams, reality often sets in.

When faced with the realization that their beloved land is rarely used, this scenario raises an important question: what can be done?

The owner of Claybaby, a shed turned into a tiny house, rents it out for passive income.

According to Nick, the tiny home’s owner, clay babies are circular geological formations found in the South Fork of the Skykomish River.

When Nick and his wife purchased land in Index, Washington, they intended to use it as a ski getaway and river retreat.

Short-term rentals were suggested after they noticed the property was often unused.

In lieu of a traditional home, they opt for a shed that has been converted into a tiny house.

For around $8,000, they bought a shed with a front porch, siding, windows, and a roof.


Although the shed requires electrical and plumbing work, insulation, and wall paneling, it comes with all necessary materials, resulting in a total project cost of about $30,000.

Over the course of a year and a half, Nick finished the conversion, connecting all systems and finishing the interior.

Nick’s shed was delivered by a helpful individual who assisted with placing cinder blocks in a particular configuration to provide a stable foundation.

A fresh coat of paint was applied after leveling and shimming the interior.

Insulation and wall boards were installed to turn the shed into a comfortable living area. The property already had utility connections, simplifying the process of connecting the shed to the systems.

Claybaby, a shed turned tiny home, features a staircase made from wood milled on-site from a big leaf maple tree, highlighting Nick’s resourcefulness.


A hand-me-down swing from neighbors completes the relaxing atmosphere of the shed.

Converting a shed offers advantages such as convenience and control, ensuring a warm, dry, and comfortable place to sleep no matter what the weather is like.

Claybaby’s strategic positioning offers visitors a breathtaking view of the river and cliffs of Index.

A stage on the property has hosted music festivals and serves as a place for children to perform skits.

A four-foot front porch expands Nick’s tiny home’s living space to 12 by 16 feet, making it 12 by 20 feet.

With a W Hotel vibe, Claybaby blends seamlessly with the surrounding forest, river, and mountains.

There is a loft, a bathroom, and a cozy area for watching movies despite the compact size.


Nick used reclaimed old oak flooring from their 1945 Seattle house, stylish chandeliers, and quartz countertops.

There is a sinkhole in the kitchen and an induction cooktop. Geodes from India and pyrite discs from Illinois adorn the walls.

As well as a microwave, there’s a small mini fridge in the kitchen area, suitable for short-term stays. However, it’s not the most effective at keeping items icy cold.

Located above the kitchen area, a tiny loft provides a creative and daring sleeping spot. To prevent any accidents, metal railings were installed to provide safety.

To climb onto the loft, you must maneuver around a rock nub on the counter, which is typically used for car rooftops.

In order to create floating shelves and staircase details, Nick used fallen big-leaf maple trees from the property.


During delivery, windows were already in place.

Shiplap, a popular design choice on Instagram and HGTV, inspired the interior design.

A custom ladder made of big-leaf maple provides access to the loft, which is large enough to accommodate two people comfortably.

A small shelf or workspace was incorporated using big-leaf maple, adding functionality and charm. Air conditioning units were installed to combat the summer heat.

Nick designed Claybaby to include a wall for movie watching and a compact but inviting bathroom.

Natural black slate flooring with a heated floor provides a pleasant, textured foot experience in the bathroom.

There is also a sleek vanity, a simple round mirror, and a compact toilet that measures just 25 inches to the edge of the bowl.

As a result of the white marble in the bathroom, the room feels opulent and enhances the space. Using a barn prefabricated mechanism, Nick installed a large, extra-wide door to separate the bathroom from the movie watching area. This allows for privacy, whether you’re using the bathroom or watching a movie.

It costs $95 to $125 per night to rent Claybaby, so the project had a relatively quick return on investment.

He hopes shed conversions will gain traction as a temporary or affordable housing solution, reducing the need for makeshift accommodations.

There are six different types of Index Cabins, including sea containers and tree frame buildings.


Nick expresses gratitude for the project’s rewarding journey and unexpected delights.

His first venture into construction, Claybaby, demonstrates his commitment to resourcefulness and creativity.

Take a look at the video below to see how the shed was transformed into a tiny home:

Like it? Share with your friends!


Your email address will not be published. Required fields are marked *