Modular Homes?

[David Dachtera]

Hi, Folks,

Want to solicit some input on doing new developments using modular construction.

Just to make sure we're on the same page, let me define the distinction:

Manufactured homes:
Delivered to the final site in a completed state. Example: Trailers, mobile homes

Modular homes:
Stick-built in a factory to exact measurements, delivered to site in pieces which fit on flat-bed semi-trailer, assembled on-site after foundation is poured and first floor is laid down (OSB or plywood per code).

Home building is beginning to pick up in my area and I'm exploring the possibility of developing land and providing modular homes which can be completed more quickly than traditional stick-built-on-site homes.

Experiences would be the most helpful. Opinions are welcome, also.

[Nick Coonis]

Hello @David Dachtera I just closed my loan on my modular construction home today (yes!!). Anyway, I have yet to find the "catch" in this great deal we've stumbled into. Our modular is a 1782 sqf, 4 bed three bath single story. Below are the pros and cons as I see it:

Pros

1. A modular is registered with the county as a "single family home". It's no different than any other site built house on the street. I've confirmed this MANY times with the manufacturer and the Los Angeles County Building Department. 

2. The plans come stamped by the state, which supersedes the local city or county jurisdiction! I couldn't believe this myself but it's true, I've also confirmed with the county. You do have to get approvals from the other various departments for the site work being done (planning department, fire department, etc.) but you get to skip the Building and Safety Department!

3.  The price. My 4 bed two bath 1782 sqf home, with all the site work, foundation, utilities, grading, etc. is going to cost $288,000, just the house itself is only $167,000. The lender had a future appraisal done on the project to see what it will be worth when it's all built and they appraised it at $450,000. Instant equity!

4. Since it's a regular single family home, you can add onto it anytime with a site built add on like you would with any normal home. We can even add a second story later if we wanted to (our exterior walls are 2 x 6). 

5. The construction is required to be built to the same codes as site built homes, but in reality it's actually built stronger because it has to withstand a road trip on the back of a flatbed. Our modular is built in two halves in the factory, and each half is delivered on the back of a truck and unloaded with a crane and set in place.

6. Once I get my building permits, the factory says they build the house and have it ready to deliver in 4 weeks!! During those 4 weeks our site work will be underway and hopefully the house and the site are ready at the same time. The whole building process should take under 4 months. 

7. Minimal site work after the home is delivered. Our home is delivered drywalled, painted, sided, roofed, etc. Even the appliances are installed in the factory. They do have some finish work to do onsite where all the marriage lines meet, they have to patch in the siding, repair whatever drywall cracked, and install the wood flooring (carpet is put in at the factory too).

Cons 

The only con we can think of is the design factor. I guess you can't really get a 100% custom home because it has to fit on a truck. We were pretty much confined to a ranch style rectangle. They did have other designs that had more branch off section of the main house, but we stuck to the models that only had two modules (section) because they were much cheaper. And like I said before, you can always add onto them. 

Since we've started this project, I've looked at this as an investment strategy in the future (ours is for our primary residence) and I can't see a reason why this wouldn't be a great idea. Faster, cheaper, and easier for a finished product that's registered the same as a normal home, and just as nice if not nicer. Think of how much easier it would be to not have a site full of a 10 different sub contractors, weather delays, etc. The home comes out of the factory in a month ready to install. Our homes is upgraded with stone counter tops, hard wood flooring, high vaulted ceilings, central air and heat, brand new stainless stell appliances, etc. 

Hope this helps!