I have a situation that I am trying to think of a solution for.
I just recently went and looked at a house that is in a great neighborhood and has a great 1 acre lot. It's an REO, they are asking 52k, the ARV is 135k-145k.
The house needs to be tear down. It is not structurally safe and would be nothing but a money pit if I did buy it. I know I can't pay near what they are asking.
I thought about buying it anyway (Only at the right price), tearing it down, and either rebuilding or putting a modular home on it. I'm just trying to figure out a way to make something happen with this deal. I know that there is a point that I need to walk away from the property, but I want to exercise my mind by trying to come up with other solutions.
What are the costs of a modular home? Would I be able to do a cash refi at the end to pull some money back out of it? I would actually like to live in this area but not only if it makes sense.
Any suggestions? Thanks!
Can you even put a modular home? Arent they allow only in trailer parks?
Is this a high end? No body going to buy it. If it not comforming.
@Taye N. , I'm not 100% sure if a modular would be allowed. I wouldn't want to just put in a regular modular home. I would want to put in one that look similar to the homes around it.
Maybe a 3/2, about 2000 square feet, two stories, and with an attached car garage.
Remember that the property will always be labeled as a modular home which could impact resale value. There are decent modular homes out on the market, but it will always lag behind a traditional stick built home. Also, I believe there are more stringent lending requirements from Fannie Mac/Freddie Mac but don't quote me on that one.
if you replace like for like sure. But modular homes sell for significantly less.
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