F&F on a Pre-Fab House?

[John Franczyk]

I looked at an SFR in southeast Wisconsin that superficially looked like a good deal, but on further examination the structure itself appears to be a "prefab" house, i.e. the type of house that was built in a factory somewhere and then trucked to its final location for assembly and installation of mechanical systems. You see these buildings on the interstates all the time, typically being transported in two pieces by a pair of semis. The structure is about 50 years old and is overall sound - new roof and windows, newer siding, no apparent wall cracks, solid poured concrete foundation with only one small crack that is less than 1/4 inch.

The house needs updating and major cleanup work. I am wondering if its "prefab" origins require a different analysis than a more traditional structure that is built on site. I do have questions about insulation and the integrity of some of the walls, but without getting very deep into the building's interior I can only estimate what my extra costs from those issues might be.

Does anyone have any experience doing an F&F on a prefab structure? This property is in a good location and has a potential for strong growth in its value, given the recent bump that properties in southeastern Wisconsin have been experiencing. The existing construction appears to be better quality than a mobile home. The owners won't be ready to do anything for at least 3 months, but I'd like to get an option on it now if it's worth it.

Thanks!