I’m new to the real estate development area, however, have you tried searching for an area for a lot? As you know, lots may already have the sewer and utilities in place. Subdivisions under construction may be worth a shot. The builders/realtors sell lots and you may be able to bring in your own builder. Perhaps, the manufactured home could be ideal for the subdivision.
If someone has more detailed information, please feel free to correct or add anything to what I’ve stated.
Manufactured Homes As Investment - Posted by Sadhna Ram
Posted by Sadhna Ram on October 28, 2003 at 13:22:38:
Has anyone handled an investment project where you purchase a piece of land (Zoned Residential), purchase a “Manufactured House” and have it installed on the land. This may have included improving the land, bringing in utilities, etc. as part of the project. I would like to know about your experience and ROI.
I have been searching my area for land (Zoned R1) to purchase in order to place a manufactured home on it. I live in the Sacramento area. It seems by the time you buy the land, improve it, prepare the foundation, pay for permits, utilities, etc., it would be better for me to buy a stick-built home (the costs are about equal). I keep hearing manufactured homes are a good real estate investment, but I can’t seem to get the numbers to show as such. Any suggestions or comments?
Re: Manufactured Homes As Investment - Posted by Dan - GA
Posted by Dan - GA on October 28, 2003 at 18:23:00:
I’ve looked at manufactured homes and found many interesting things. Like one of the other posters stated, they vary in quality and cost. I saw a two story manufactured home that was being marketed by a local mobile home dealer. The house was basically a 2 story doublewide. The 2 HVAC units were Colemans that were identical to the one in their 1 story DW. I’ve also seen units that were undetectable from a site built home except that the center wall was 6" thick at doorways (2x3 mated together) instead of 4" thick like the other walls in the house. You can order anything from a plane jane with painted pine finger molding to something with built up stained oak crown molding, chair molding etc… You can order the cheapest carpet and vinyl or the most luxurious carpet and hardwood floors throughout. All those choices will determine the net $/SqFt
The biggest and best reason to get a manufactured home is that your project could conceivably be bringing in money in 2-3 months instead of 6-8 for the typical site built home.
Re: Manufactured Homes As Investment - Posted by Wayne-NC
Posted by Wayne-NC on October 28, 2003 at 15:59:16:
I did one. I bought the lot at a good price, paid the builder 15k down and had no problem with a cash out refi when it was finished to pay off the builder. For comparison purposes you may want to find out the cost per square foot. Also keep in mind that manufactured/moduler homes come with different quality construction like anything you buy. Now remember that a stick built home will have a lot of the same costs associated with building that you already mentioned. For example, site prep and permits are needed for both. Figure the cost/sf of just the structure itself and see what the numbers look like then.
Re: Manufactured Homes As Investment - Posted by Randy (SD)
Posted by Randy (SD) on October 28, 2003 at 15:20:52:
Be sure you line up financing too? Manufactured homes are sometimes more difficult to finance (not as bad as mobils but many lenders won?t finance them).