Value add to existing property

Value add to existing property

East Texas · Member since 2018 · 206 posts · 138 votes

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?

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  • San Antonio, TX · Member since 2009 · 3k+ posts · 1k+ votes
    6y

    @Justin K. Before you do anything, it's best to check with your local zoning department to see what you can and can't do with that piece of land. Ask them if you can put a mobile home on the land and what the requirements are. This will give you a better picture of what your options are. Hope that helps! 

  • East Texas · Member since 2018 · 206 posts · 138 votes
    6y
    Originally posted by @Rachel H.:

    @Justin K. Before you do anything, it's best to check with your local zoning department to see what you can and can't do with that piece of land. Ask them if you can put a mobile home on the land and what the requirements are. This will give you a better picture of what your options are. Hope that helps! 

    As far as I know there is no zoning laws. Again, this is rural and not anywhere close to a municipality. 

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