All Forum Posts by: Nathan W.

@David Edwards

Wow, this is great info. I appreciate you taking the time to share your experience and strategies.

Your idea of these smaller communities of duplexes on a one acre lot or so is exactly what I eventually would envision doing assuming I could get this first deal off the ground and worthwhile. I’m really at the front-end of all this.

The dealer I’m working with does land / home packages where they assist in taking care of everything for you from the home, land, land prep, setup, permits, etc. I’m sure I will likely be paying a little more for this approach, but this simplified option is more appealing for the first one while I’m learning the processes.

The $195k included an approximate of the land / home package with their standard build and layout. I’m sure I would want to make some upgrades so all-in if I could be in the 95-105 sq/ft I’d be happy with that. Then ideally I would hope it would appraise closer to the average of a site built home and have some equity built right in.

Your suggestions on the high pitch vs low pitch roofs was very helpful as well. My personal modular I did go with a high pitch for the aesthetics, but I was on the fence on whether this was really worth it on an investment property. I think with the majority of the homes in the areas I’m looking having a lower pitch roof so the money would probably be better spent on upgrades inside the home.

Also, thanks for taking a look at the numbers. To be on the safe side, I think I will go more conservative with the vacancy and add in some of the others that I had overlooked. :)

The biggest hurdle that I think I face is the financing. The dealer I’m working with generally works with individuals and not so much investors, so their partners don’t really offer much for investment loans, so my next step is to explore the loan aspect further and see what I can turn up.

Thanks again for taking the time to share your experience on all of this. I just sent you a connection invite. It’d be great to continue to connect as well as to follow your journey.

Nathan

Hi, I’ve been analyzing dozens of properties in two particular markets I’m interested in. I’m ready to get off the sidelines but I keep running into some obstacles.

First the local housing market is booming and due to a housing shortage and these low interest rates real estate prices keep climbing. Deals are few and far between and any decent deals that cashflow favorably are getting snatched up quickly.

This leads me to explore another option... I personally live in a modular home. I really liked the modular process. It’s very efficient, high quality, customizable, and affordable.

I spent a lot of time before committing to the modular home process. And in addition to it working for us personally it also seemed to make sense financially.

Unlike manufactured homes that do not appreciate, the modular homes are technically appraised as a regular site built home since there is no trailer, it’s built up to code and has a permanent foundation.

My contacts have gotten me a quote for a modular duplex 3 bed / 2bath each side and I can be all-in with land for $195k. This equates to $85-90/sq ft. The local market is currently averaging $122/ sq ft.

So my questions would be:

1. Has anyone gone the modular home route for investing?

2. From research and talking to some individuals in the industry, modular homes are supposed to appreciate like a normal site built home, but does anyone have any firsthand experience with this as being true?

3. Does anyone have any cautions on this approach? On paper it seems to make sense, but this would be my first deal and I want to make sure I’m not missing something :) If you’re interested in seeing the number and sharing feedback here they are... https://app.dealcheck.io/#!/shared/-MNVioVAmX_-taJu90LZ

Thanks for your feedback.