Do Rising Construction Costs make High End PreFab Like Dvele.com a good idea?

Question

I loved the Blu homes concepts and designs, it was purchased by Dvele.com and they are moving to Montana. Their website says they can have a home ready for a developer in 4 months once up and running next year.

Has anyone out there built or bought a Blu home or Dvele home?

My main issue is that they will be booked to capacity (happily) in a short time. When I make my second and third purchases I will be on some waiting list of bookings. This will defeat any usability for business purposes to me.

I am kind of in Love with VERMOD right now. The value and usability of a well made low cost, very energy efficient home is real.

What do you think?

Have a good week!

Julio Gonzalez · Answer

Welcome to BiggerPockets, Jason! It's great to hear about your interest in Blu homes and Dvele.com's transition to Montana. Their ability to deliver a home in just four months is certainly impressive. -Julio

Rick Albert · Answer

I haven't worked with either but there are a few things that always come to mind:

1. Building codes: I see that they have solar panels, but do they have fire sprinklers? Rain Barrels? Are they Title 24 compliant? Even the correct insulation matters. Every market has different building codes. Part of the problem with Los Angeles/California is we are overregulated when it comes to building, making it impossible to build affordable single family homes.

2. What utilities are included? If you are thinking of buying raw land, then you have the issue of running utilities to the property. That's why with new construction it is more cost effective to tear down an existing home.

3. I have seen some pre-fab homes like this in Los Angeles. They were priced as single family because of the way it was built and established to the foundation. However it would be a good idea to consult with a lender if the strategy is to BRRRR, finance the entire deal, etc.

Bruce Woodruff · Answer

Checked out their website...looks very interesting! I like that they have built-in solar panels and batteries to power the home in the event of a Grid-down sitaution.

My concern would be: will they be valued as manufactured homes are? Y'know. lower price PSF? I guess we'll have to see as they gain some time on market.....