Shipping Container homes - any experience investing/developing?

Question

I've been intrigued by these Shipping Container homes.  I observe that they can be quite versatile and cheaper than conventional housing.  End products look pretty neat and it is nice that they are also eco-friendly.  I'm out in the Bay Area, California.  I have not seen these homes out here.  I'm curious if anyone has experience in buying, building, and/or selling these homes and what the upsides/downsides are?

Minh Dong · Answer

Hi Desiree,

There are quite a few big projects using container homes in the LA areas. For example, https://archpaper.com/2017/09/los-angeles-shipping...

https://www.huffingtonpost.com/entry/sleek-apartme...

So I'm sure its the matter of talking to the right person. I'm very interested in this areas as well since currently living in Seattle, i could see it would help a lot with getting more affordable (and creative) housing options here.

I have good relationship and contacts with a large container manufacturer in Vietnam which builds and customizes the container homes. So getting the container homes themselves to the site will not be a problem.

Josh Cuthbertson · Answer

You haven't seen them in California much because the seismic codes are too stringent to make them work here. We have been approached by TONS of developers / owners / investors to do shipping container homes. I mean people with enough resources to make them workable but every single time I tell them the official process to make them work, they back out.In short, if you want to do one, you'll need to build two. One to keep and one to destroy through the ICC testing process. seismic loading, fire testing, etc. etc. We're doing underground hobbit style homes that are domes buried underground. And to get those past all of the necessary testing requirements it has taken nearly two years. It would be a similar process for shipping containers.

In fact the only container building i've seen in CA is outside Giants stadium in SF. They have a cool food truck style courtyard built of all shipping containers. Still trying to figure out how they did that. My guess is they are permitted as mobiles and not on any foundations.

Rand Knutson · Answer

Hi Minh,

My partners and I are investors in the Seattle area, and we're looking to getting into building container homes for airbnb short term rentals! How has your experience been over the past year or two with this model?

Desiree Maya · Answer

@Thalia Georgopoulos I agree! It is such a huge issue, you’d think the government would get more creative about solving the homelessness problem.

Minh Dong · Answer

@Justin Blumenthal we are working on getting the lands right now. The city is fine and they are okay with it but the loan is a bit of a pain since the bank I worked with doesn't have experience with this type of project. Also, the project we are investigating will be a decent size one to two bedrooms just to test out the water. Since it's a decent size so I didn't have much information about tiny housing. ( i just know in LA they are pushing for it to help with their homeless issues).

Also prefab tiny home is also being developing around Seattle area as well https://www.geekwire.com/2018/paul-allen-backed-bl...

I got in touch with the CEO of the company in that article (Blokable) and it seems they are doing great.

Nik Moushon · Answer

Your biggest problem I see is local jurisdiction red tape, meeting code and the worst part....finding inspectors that know how to look at it the right way. Bigger cities like Seattle and LA are use to these kinds of new styles of buildings and usually* arent a big problem but unless its already been done in that area it could be more difficult that its worth. Delays and extra fees/inspections can really kill a projects profit margins fast. This is even worse the farther you get from the large cities.

The city I'm in doesnt even allow tiny houses. Can you image me suggest container houses LOL. Anyways, your best bet is to find precedent in your target area, or close to it, and see if you can get in contact with them to see what they went through.

Oh and dont take their world on that its cheaper than conventional framing. Find an already built project and ask around. I seriously doubt it was cheaper enough that it was worth the hassle. If it really was everyone would be doing it....and their not. And I'm pretty sure this is largely because 99.99% of contractors have never done this kind of build. So they either upcharge at the front and end with change orders and such.

Shipping Container homes - any experience investing/developing?

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