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Updated over 4 years ago,
Value add to existing property
I purchased this piece of property two weeks ago with a 3/1 on a large lot. The house sits in the back of the property and basically has a massive front yard. The 3/1 is a stick built home. ARV after BRRRR is around $90k. This is in the middle of no where rural so we are not talking about high end subdivision.
So while listening to a BP podcast about value adding to a property, a light bulb went off and I had either a stupid or great idea. Why not buy a manufactured home and split the property into halves and have two units on one piece of land.
I inquired about modular homes but they are wanting something like $95/SF which after refi I am not so sure...
I inquired about a manufactured/mobile home and they are easily in the 1% rule and possibly the 2% rule.
So does this sound like a possible business path that sounds legitimate or would adding in a mobile home decrease the value of the other home and everything be a wash?