A couple bought a 527-square-foot tiny house for $37,500 more than a decade ago. It’s helped them live debt-free.

Rust, 40, and her husband were living an hour outside the city in 2013, renting an apartment from Rust’s grandparents.

“I would always check Zillow to try to find something that was affordable,” Rust said. “We didn’t have a lot of money or any savings or anything.”

Nothing panned out on Zillow, but eventually, Rust stumbled upon the perfect house on a real-estate agent’s website.

The one-bedroom home was small at 527 square feet. It also needed work on the plumbing and electrical systems, and the layout wasn’t ideal.

“When we bought it, it was a typical shotgun house for New Orleans,” she said. “You had to walk through each room to get to the other. You walked into the living room, and you would have to go through our bedroom to get to the kitchen.”

However, it was in a great location in Jefferson Parish, right outside New Orleans, and it had a nice yard. It was also financially feasible for the Rusts at $37,500.

The Rusts bought the home in 2013.

“We had to get a loan through a family member because the bank will not touch a loan under $50,000,” Rust said.

They were able to pay the loan back in three months, though, before they moved in. They also fixed their sagging foundation and updated the plumbing and electrical systems on their own, with help from family.

The Rusts made the setup of their home work for the first seven years they lived there.

“We were just trying to economically get into a place that we can afford and live, so we kept that layout,” Rust said. “Then during COVID, when we were all trapped at home and bored, we were staring at the walls thinking, ‘We can do something with this.'”

They gutted the home, tearing down the walls and making new ones. They moved their bedroom and bathroom to the back of the home and combined the kitchen and living area at the front into an open-concept space.

They’ve been living happily in the home with their two dogs ever since.

Before the renovation, the Rusts didn’t have a true entertaining space, as both the living room and kitchen were small and separated.

“Now, when people come over, we can fit 10 people in the living room and kitchen to sit around and hang out,” Rust said. “Before, it felt like if you had three people in the living room, it was too crowded.”

The Rusts fit two loveseats in the living room, and there’s still room for a walkway between them and the coffee table.

Artwork covers the walls, and a printed rug contrasts with the shiplap walls.

The kitchen is compact, but it has everything the Rusts need, including a stove, oven, and fridge. Hanging storage helps them make the most of the small space, like the pots and pans that hang above their island and the open shelving on the walls.

Rust typically shops secondhand for her home, and with her background in construction, she makes items she finds into one-of-a-kind treasures.

For instance, she used two vintage dressers she found on Facebook Marketplace to make her kitchen island.

“I had a rolling cart kitchen island before, but it had open shelves,” Rust said. “When you have dogs, hair goes everywhere. If you want to go and start using your mixer or your blender or any of that, you have to start cleaning it all first. It was so frustrating to me, so I knew I wanted something that closed.”

The dressers were the perfect solution. She combined them into one structure, taking advantage of the drawer storage on either side.

Like the island, the bar came together with a secondhand find.

“We got a vintage teak cabinet from Facebook Marketplace,” Rust said. “This guy sold it to me for $25. It’ll forever be my favorite Facebook Marketplace find.”

The Rusts screwed the cabinet into the wall, making it a built-in where they stow their liquor. They also got a wine fridge, a freezer, and a wine rack, and put a wooden slab on top like a counter.

Now, they can serve drinks without further cramping the kitchen.

After the renovation, the bedroom was moved to the back of the house, but it’s only separated from the living area by an archway, not a door.

Big windows and a door to the yard bring natural light into the space, and the Rusts have a couch in the bedroom as well for lounging. There isn’t much storage space in the closet, though, which can be a pain point for Rust.

“I literally had a meltdown last night about closet space, because we have one tiny closet and one dresser that my husband and I share,” Rust told Business Insider.

She also turned an old file cabinet she got for free into storage for her makeup and other products.

The bathroom is off the house’s bedroom and has a shower, toilet, and sink. The toilet and sink are both brand-new.

Subway tile makes the walk-in shower feel modern and spacious.

Although the Rusts’ home is under 600 square feet, they’ve made it feel larger by creating a spacious outdoor living area.

A door from their kitchen leads to their covered patio. Rust said they used a polycarbonate cover, ensuring daylight could still flow through to make it feel inviting. The patio has a dining table for hosting dinners, a TV, and an elaborate cooking station.

“We like grilling. It’s a hobby of ours,” Rust said. “So we have two Big Green Eggs.”

They also have a pizza oven they bought with stimulus checks they got in 2021.

“Instead of putting it toward bills or something that would have been adult-related or practical, we bought a pizza oven,” Rust said. “My husband makes amazing pizza.”

Past the patio, the yard is covered in gravel and has a canopy of trees providing shade for the different entertaining areas. There’s a seating area, an array of planters, a picnic table, a soaking tub, and an outdoor fireplace that Rust found.

“All of my stuff is pretty much repurposed from other things,” she said. “I found a fireplace insert that goes in the house, but I made it into an outdoor fireplace.”

There’s even a chicken coop in the back of the property.

Rust said they wanted to prioritize making their yard inviting so they would always have a place to gather with their loved ones.

“When things were shut down, and restaurants were restricted, you really couldn’t hang out with your friends,” Rust said. “We wanted a safe space to be able to have the feel of you’re going to a brewery or a restaurant, and you’re still getting out of the house, but you’re not in an environment where you feel unprotected.”

Now, they can entertain year-round. Their dogs can also roam the outdoor space, as the yard is fenced and the house has a doggy door.

The financial freedom of a smaller home has made all the difference for the Rusts.

They don’t have a mortgage since their house is paid off, and Rust said their utilities range between $500 to $600 a month, depending on the season.

For the Rusts, living in a smaller space allowed them to more fully enjoy it because they weren’t worried about their finances.

“I think sometimes people get that mentality when they buy a house, they get into a lot of debt, and then their marriage suffers because they’re both working to try to pay for stuff that you don’t even have the time to enjoy,” she said. “I’d rather live debt-free and live my life versus having more material things.”

Of course, the small space can feel tight sometimes, especially if they’re cooped up inside for days at a time if it’s rainy outside. However, it gives the Rusts the life they want.

Rust told Business Insider that her experience during Hurricane Katrina drastically changed her relationship with material goods.

“Hurricane Katrina took everything I owned,” Rust said. “It wiped me out. We had nothing. I had three sets of clothes. So my relationship with things on Earth is like, you could lose everything. Nothing’s permanent. One day you could wake up and own nothing, so don’t put your attachment in the things you own.”

“But I got my husband out of it,” she added. “He was from Arizona, and he moved to Louisiana to do relief work. We did volunteer relief work for a few years, and that’s how we met. Katrina did way more for me than it took.”