Modular Homes - Is anybody building for modulars for rentals?

3 Replies

Hello BP, 

Is anybody building modular homes for rentals?  Looking for a modular (not mobile) builder for some land in Northern Mississippi.  So far haven't got great response.  Almost like they don't want my business, maybe it was holidays...

I have experience with a builder here in California, looking to duplicate in Mississippi.  Also anyone familiar with clearing land, trees, brush (burning?) what agencies to consult, etc.  Any help appreciated.  Thx, Jeff

It's hard to find folks wanting to build single family modular housing outside of the east coast in my experience. If you had a multifamily project it would be more enticing for a builder. You have to think like a fabricator. They don't want one-offs clogging up their line. Repetition is where they shine.

@Jeff Caravalho I was looking at doing a development deal in Nevada and was seriously considering modular (was going to be 50-100 homes).  I will say when I spoke with the contractors and companies that do modular, they did not want to talk much until I told them the mass we wanted to do.  That is when their ears perked up.

I will say that from my research there are some good and bad about modular homes. First, you are not going to save that much money on construction.  The price difference was very minimal when you take into account getting a pad and utilities ready for it.  Then the pricing was slightly higher, however that is counteracted by the time it takes to come to market so you are saving on you loan payments.

Secondly, even though you think it is a fast way to build a home, you still have to wait for the modular parts to be made for you.  One company I was talking with were on a 9 month waiting list.  

I will say the only companies that would talk to me were more of the "custom" modular. There are a few companies out there that do one offs but they are focused on the 3k+ sq ft multi million dollar homes for California.

I would say if you are trying to build rental homes, there is not that much of a benefit to doing modular.  If there was, traditional construction would already be out of business.

As for clearing land.  Talk to the local city/municipality, they should direct you to the right people to talk with.  Could just be local fire or you could get directed to county or even a federal jurisdiction depending on what you are clearing

@Pedro Tavares Thanks, that explains the lack of response. 

@Jonathan Orr Good stuff, yeah we liked how fast it went up.  We reduce our cost thru sweat equity, and love having straight segments of wall we can piece together.  It would be great if there was someone out there to fill the little guy niche.  I guess it's just not cost effective.  There are mobile home companies that put them together like a normal stick frame house (2x4 studs, etc), not the flimsy stuff typical of a normal double or single wide,  We may have to that route out there.  Thanks!

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