I was just checking in to ask a few questions specific to manufactured housing in CA. Manufactured housing in my area seems to be of a high build quality comparable to stick built homes, while running right around 50% of the cost per square foot. Assuming the numbers all add up (what an assumption right?) would the idea of developing lots and placing manufactured homes down for rent be foolish? In CA you can convert a manufactured home to real property if placed on a foundation.
Am I missing huge pitfalls here?
Hopefully this hasn't been beaten to death in the past!
Thanks for any information!
Renting manufactured homes will yield less than detached single family, and you also have to account for the cost of the land that you put the manufactured home on as well as the cost to build the home.
Thanks! I'm factoring in site improvements (foundation, sewer/water hookups, well, septic, etc.) as well as the permit fees and cost of house. When you mention it yielding less, is that to say it will rent for less/sq ft then a standard stick built home? I know I'm asking for specifics that can't be answered easily as they're very location dependent, but in general, safe assumption to bet that manufactured homes converted to real property still follow the lower rents/sqft?
Yes it will rent for less than a stick built home, sometimes far less. The best way to minimize this difference is to have a manufactured home that if you were just driving by you would not immediately know was a manufactured home.