So, after over 10 years of looking at properties and suffering from analysis from paralysis I finally am closing on my first rental at the end of this month. I am wondering about the opportunity of building modular homes (1-4 units) on vacant lots, and renting them out. Are any of you doing this or know if anyone doing this in our area?
When I was a renter I did not care what type of home it was, and I assume no one else does either. So far it looks like modular homes can be purchased/constructed at cheaper rates than stick built, and I don't think they would rent differently. I am not looking to place them in higher end neighborhoods so customizing them would not be an issue. Anyone have any thoughts / advice on this tactic?
Thank you for your time!
Congrats on the first deal!
I don't know of anyone in our area doing that modular home strategy. Although they may cost more, I do believe a house will command a higher rent than a mobile home in most areas.
Perhaps you can generate better cash on cash returns doing what your talking about. For ease of funding and long term value however, I have to think houses will be much better.
If I were you, I'd show up to Larry Harbolt's meeting on Monday and ask for opinions during the discussion portion of the meeting.
Thank you for the reply jason, but modular homes are not manufactured/mobile homes. Modulars are built to the florida byilding code standards, not hud/dmv. I am not sure that modular homes have to be disclosed any differently than stick built but I will be checking with the lawyer on friday.
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing