600sqft stick-built house vs new 1700sqft manufactured house?

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600sqft stick-built house vs new 1700sqft manufactured house?

Ellie Narie
Investor · Ashland, OR · Member since 2018 · 202 posts · 38 votes

If you had your own land, and you can either: 1. Build a 600 square foot stick built house or 2. Put a brand new 1700 sqft manufactured home on permanent foundation, what would you rather do? Stick built houses appreciate better, right? Is it better to go with a 600 sqft stick built or 1700 sqft manufactured (brand new)? Assuming that we're looking at just the value, and we don't care about how big the house is. 

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  • Account Closed
    Specialist · Paradise Valley, AZ · Member since 2018 · 3k+ posts · 2k+ votes
    8y
    Originally posted by @Ellie Narie:

    If you had your own land, and you can either: 1. Build a 600 square foot stick built house or 2. Put a brand new 1700 sqft manufactured home on permanent foundation, what would you rather do? Stick built houses appreciate better, right? Is it better to go with a 600 sqft stick built or 1700 sqft manufactured (brand new)? Assuming that we're looking at just the value, and we don't care about how big the house is. 

     Depends on the goal of course. To live in? To have as a rental? or To sell?

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  • Ellie Narie
    OP
    Investor · Ashland, OR · Member since 2018 · 202 posts · 38 votes
    8y
    Originally posted by @Account Closed:

    If you had your own land, and you can either: 1. Build a 600 square foot stick built house or 2. Put a brand new 1700 sqft manufactured home on permanent foundation, what would you rather do? Stick built houses appreciate better, right? Is it better to go with a 600 sqft stick built or 1700 sqft manufactured (brand new)? Assuming that we're looking at just the value, and we don't care about how big the house is. 

    Well, I'd want to live in it for a bit, then rent it out, but I feel like if I get the manufactured home, I wouldn't be able to sell it if I needed to.

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  • Account Closed
    Specialist · Paradise Valley, AZ · Member since 2018 · 3k+ posts · 2k+ votes
    8y
    Originally posted by @Ellie Narie:
    Originally posted by @Account Closed:
    Originally posted by @Ellie Narie:

    If you had your own land, and you can either: 1. Build a 600 square foot stick built house or 2. Put a brand new 1700 sqft manufactured home on permanent foundation, what would you rather do? Stick built houses appreciate better, right? Is it better to go with a 600 sqft stick built or 1700 sqft manufactured (brand new)? Assuming that we're looking at just the value, and we don't care about how big the house is. 

    Well, I'd want to live in it for a bit, then rent it out, but I feel like if I get the manufactured home, I wouldn't be able to sell it if I needed to.

     600 sq ft houses are hard to get financing for and people rarely want something that small. So, it might be difficult to sell unless the buyer has cash.

    A brand new manufactured is easier to sell. Talk to a couple of mortgage brokers in town (banks are harder to work with) look up "Mortgage broker" or listen to the radio for their ads, usually on the weekends. Or call a real estate office and ask who they recommend for a mortgage broker. Ask the mortgage broker what the requirements are for financing a manufactured and just make sure you adhere to their underwriting rules so that you will be able to sell in the future.

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  • Ellie Narie
    OP
    Investor · Ashland, OR · Member since 2018 · 202 posts · 38 votes
    8y
    Originally posted by @Account Closed:
    Originally posted by @Ellie Narie:
    Originally posted by @Account Closed:
    Originally posted by @Ellie Narie:

    If you had your own land, and you can either: 1. Build a 600 square foot stick built house or 2. Put a brand new 1700 sqft manufactured home on permanent foundation, what would you rather do? Stick built houses appreciate better, right? Is it better to go with a 600 sqft stick built or 1700 sqft manufactured (brand new)? Assuming that we're looking at just the value, and we don't care about how big the house is. 

    Well, I'd want to live in it for a bit, then rent it out, but I feel like if I get the manufactured home, I wouldn't be able to sell it if I needed to.

     600 sq ft houses are hard to get financing for and people rarely want something that small. So, it might be difficult to sell unless the buyer has cash.

    A brand new manufactured is easier to sell. Talk to a couple of mortgage brokers in town (banks are harder to work with) look up "Mortgage broker" or listen to the radio for their ads, usually on the weekends. Or call a real estate office and ask who they recommend for a mortgage broker. Ask the mortgage broker what the requirements are for financing a manufactured and just make sure you adhere to their underwriting rules so that you will be able to sell in the future.

    I'm just worried that, say, 10 years down the road I will owe more on the manufactured home than it would be worth. Do new manufactured homes hold up their value if they are tied to land? 

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  • Account Closed
    Specialist · Paradise Valley, AZ · Member since 2018 · 3k+ posts · 2k+ votes
    8y
    Originally posted by @Ellie Narie:
    Originally posted by @Account Closed:
    Originally posted by @Ellie Narie:
    Originally posted by @Account Closed:
    Originally posted by @Ellie Narie:

    If you had your own land, and you can either: 1. Build a 600 square foot stick built house or 2. Put a brand new 1700 sqft manufactured home on permanent foundation, what would you rather do? Stick built houses appreciate better, right? Is it better to go with a 600 sqft stick built or 1700 sqft manufactured (brand new)? Assuming that we're looking at just the value, and we don't care about how big the house is. 

    Well, I'd want to live in it for a bit, then rent it out, but I feel like if I get the manufactured home, I wouldn't be able to sell it if I needed to.

     600 sq ft houses are hard to get financing for and people rarely want something that small. So, it might be difficult to sell unless the buyer has cash.

    A brand new manufactured is easier to sell. Talk to a couple of mortgage brokers in town (banks are harder to work with) look up "Mortgage broker" or listen to the radio for their ads, usually on the weekends. Or call a real estate office and ask who they recommend for a mortgage broker. Ask the mortgage broker what the requirements are for financing a manufactured and just make sure you adhere to their underwriting rules so that you will be able to sell in the future.

    I'm just worried that, say, 10 years down the road I will owe more on the manufactured home than it would be worth. Do new manufactured homes hold up their value if they are tied to land? 

     These days, yes they do. Pre 1978 no they don't. A 2018 unit will be around for a long time and will be in high demand. Properly treated of course, just like any other home. With 1700 sq ft you are obviously talking a doublewide.

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  • Tony SanFilippo
    Real Estate Investor · Littleton, CO · Member since 2013 · 197 posts · 77 votes
    5y

    I would say no brainer, put the larger manufactured, as long as it is NOT a HUD. IRC homes are appreciating assets in my market (verify yours), but See below:

    There is a big difference with mobile home (HUD) homes and Manufactured homes that meet the
    International Residential Code (IRC) building standard. Manufactured IRC mod home sand are just like a stick built home. They also don't have the same financing issues as HUD Mobile homes and can use conventional financing. Many people say that the manufactured home are build better because they are build indoors in a controlled environment. They are not getting rained on or snowed on during the building process and you can drug test your employees at the factory, vs. a job site contractor. Below is a picture of a manufactured home, it was set on a foundation in one day, back in 2004. Sold in 2017 for $490K $250/sq.ft.

    Here is a stick build "brick" home within just a couple blocks in the same neighborhood with a 3 car gar. that sold for $460K $247 cost per sq. ft. (5 months after the above home sold). The brick house about 15% less Square ft., but the basement was finished, the Manufactured home had an unfinished basement.

    So I would say the manufactured home on owned land has kept it's value comparable with a stick build Brick house.

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