Am thinking of teaming with someone to build a spec home on piece of property and sell it (or maybe rent it). I've been told that because of holding costs, it is more economical to do a modular home. In this case, it will have town water, but needs a septic. I'm wondering if anyone has advice on different elements of such a venture (did read good article from Mike Lacava from 2014), but wondering how best to size the build for my area, best type of lending to go after, other things to watch for in such a venture. Thanks for any thoughts/experience you can share!
Jim I should know more on this after a meeting next week with a builder who has built over 300 modulars in NH. I'm putting new homes 'to-be-built' on land in my area as a Realtor, so I'm listing the land and marketing the house as a package. We have such low inventory with virtually no builders building spec homes around here - if the numbers dovetail in with what the market will support, I'm hoping it's a strategy I can repeat, then move into actual spec homes once that model has proven itself. I'll let you know what I learn and look forward to comparing notes as we each enter this arena!
Thanks @Richard Dale-Mesaros , that's exactly what I'm hoping to do.
Start with your ARV. You need to be around 300k min for it to be worth your time, in my opinion. The costs of concrete, site work, utilities, permits, licensed tradespeople, heating systems, button-up, garages/decks, etc will blow you away.
Thanks @Stephen Polizzi for that input!
@Richard Dale-Mesaros , do you have any more info on modulars yet? Am looking at 3-4 adjacent lots here in NH Lakes Region for potential build/rent. Thanks!
Hi Jim, I have three companies to go see about this, I'll shoot them over to you if you email me your request......