STR modular new build

[Nicholas Hausmann]

I am looking at purchasing my first short term rental. There seem to be plenty of lots available but few homes in my price point. I am looking into beach markets in Florida and Alabama. I have found that a modular build may be an option for me. The upside of a fast turnaround, lower cost, and high quality storm protection are all pluses. What are some of your experiences with modular vs stick builds? I would love to know the good, the bad, and the ugly. Thanks

[Michael Glunk]

@Nicholas Hausmann

I built 2 modular homes and completed them about 2 years ago. I STR on and LTR the other. They are in a ski area of Colorado. The cliff notes are that I built them for free. How? I finance them with a construction loan (so no you don't have to pay for them entirely up front) then when I refinanced them, I pulled all of my money out. I was able to do this based on the cost to build modular versus the high cost per sq ft in the area.

Modular companies can vary. Some have a really good product and others are lower grade. So you get what you pay for. I would research those that will deliver to your area of interest. Are you going to GC the project yourself? If so there are many things to consider. If not, then have a conversation with the GC you are going to use/might OR there are companies that do the install of the modular units that can help get you ball park numbers for site work and other aspects of the build.