BC Canada - Subdivide Property to Develop Homes with A277 Label

[John Impey]

Hi all!

I am looking at a property that has a covenant placed on it for homes with A277 label only.

Purchase price of property = $550K

Cost to subdivide into 5 lots ~ $100K

Cost of each lot ~$130k with a lot only sale value $150k - $200k so a small profit to be gained at this point with property if not developed and sold as lots only.

That said, I am looking to place modern (i.e. attractive and mid level) modular homes with A277 label. I am looking for anyone with experience to understand pitfalls of using factory built homes like this with requirement for A277. Ran numbers and based on costs involved there should be a decent opportunity for a good rate of return on each place based on sale prices in the area.

Any advice or shared experience is appreciated.

Cheers,

John