New Construction - Modular Homes??

[Allison Keib]

I am a new BP Pro member and have spent the last couple of months in my area looking for great deals - any of the properties worth purchasing just seem to require an extensive amount of work. So my real estate agent suggested looking into new modular home construction. She said modular homes are much more affordable and all in, if we could find a plot of land at a discount, I'd probably be around the same investment as if I bought a multi-family and fixed it up. Has anyone had any experience in this space? Are there cons to building a new modular 4-plex vs buying an older more run-down one that I am not considering? Any thoughts would be much appreciated!!

[Aaron Poling]

I have worked for a modular housing builder, and have sold many of them as resales working as a Realtor. They are typically rated just like a stick built home, so financing shouldn't be an issue. They are built well as they have to meet the national code for modular housing, and meet whatever the local code is that they are being placed. 

I think they could be a great option, but be careful about the pricing. Typically when building a stick built or turn key home or multifamily they are including everything. If you buy a modular you can buy the units completed but there are lots of hidden costs such as: dumpster fees, onsite bathroom for workers, excavation, driveway, foundation, utility hookups, landscaping & sod or seeding. These are just a sample. I think it could be a great option but make sure to look at the whole picture and not just the price of the modular part itself. 

Hope that helps a little! Aaron