Factory Built Homes

General Real Estate Investing
1

Does anyone have any experience in factory built homes? I have been researching them and have learned that they have come a long way in construction and design which has made them almost indistinguishable from on-site built homes. They have become modular, so you can almost put together a design that you would like.

Take a look at this site: http://www.silvercrest.com/products.htm

My thought was to buy a vacant lot or teardown house, put up one of these homes, and sell it.

I got a quote for $275,000 for a 1,600 sqft 3/2. I found lot for $200K. With the median home being $550K here, there could be room to make some money. The nice thing about these manf homes is they can be built and put in place very quickly.

Is this a bad idea?

Any input would be greatly appreciated. :slight_smile:

2

How much cost is associated with the assembly process?

3

The $275K includes everything from work to get the permits (not sure about permit fees) to having the final product in place.

4

That’s not bad if you can move them. $75k isn’t a bad ROI.

5

What part of the country are you in?

6

San Diego

7

you could set it up as a 1X close. Finance everything up front; pay off the land at closing, the homebuilder gets their money right after completion, and then you roll into permanent financing while you try to sell the property.