The Question- Would you consider building Duplex housing instead of bringing in more mobile homes on the extra land.
I am planning on purchasing 5.5 acres of land that already has 8 mobile homes in place the other acreage of land is mainly grass area. These 8 homes should cashflow once I get lot rents up to Market Value. I got the perc test done today and it came back good! Meaning I should not need an engineered septic system. After talking with the lawyer to write up my lease she threw the idea of building duplex housing in the remaining acres of grass vs bringing in more mobile homes. As far as location it is in a great area between Athens and Hsv, AL.
How much would building a Duplex of 2 bed 2 bath cost
Thanks for your help
There are Pro's and Con's to your situation. On one hand Mobile Home/Manufactured Homes are not expensive to buy and you can purchased both new and used both trailered in or site built. The downfall to Mobile/Manufactured is they are not on a permanent foundation and they basically depreciate in value. While a Duplex/Tri-Ples/Quad-Plex are all SFR's on a permanent foundation and appreciate over time. When you mix the two together you actually hurt the future value of the (2-4) unit SFR's because they are adjacent to the mobile homes.
I mention this because if you try and get a cash out loan on the properties in the future you may be stuck with commercial or blanket loan. That would be based heavily on the rent roll and ROI per month including overall value/equity in all properties. You also have to make sure the water/sewerage is all located within the correct boundaries and distance from the properties. I would look into the permits and making sure you know you can get the certificate of occupancy ahead of time based on construction projections/blue prints.
@Jason Wray that makes sense. Guess I am just concerned about the best way to infill my park with Mobilehomes. I know there are options it is just finding the better choice to go with.
You could always separate the parcel of land so that you could build a MF home on the adjacent lot. keep enough room on the one portion of land that has (8) MH already enough to add a few more. Construction costs are getting more affordable in many states because lumber costs are declining. Prices fell 68% last week due to lumber yards cutting pay out costs. This may trickle into being a cost break in your area. Have you looked into stick built some call them mobile built they are actually Modular "Site built" which are easier to sell and refinance without the Mobile home guide line restrictions.
When you have a modular it's easier to build an addition in most cases...