Flipping New Construction??

[Alex Smith]

Hi all, 

Could someone advise if I am missing something big here? Does it ever make sense to hire a builder to build new construction(modular) just to turn and sell it? If so, why wouldn’t the builder just be building and selling it himself?

In researching my local market, I have found multiple buildable neighborhood lots in rural areas for around 25k. There are modular builders here that claim they will build a 1600 sqft house for around 140k. After site prep, tap fee, and various other misc items, my all-in cost would be a little less than 200k

That same size, but older houses, are selling for 235k-245k very frequently here. I'm looking at least 35k before taxes if I FSBO.

Thanks