Modular House Values

[Brad T.]

Hello Everyone,
I am currently looking at purchasing another rental house and the one I am most interested in is a modular construction. What are your thoughts on this type of construction? I don't know a lot about these. They are just built in a factory and then placed on a foundation at the home site, right? My major concern is do they go down in value like a mobile home or up in value like an on site built house. My guess would be more like a conventional construction house, but I would love to hear your thoughts.

Thanks,
Brad

[George C.]

Hi Brad,

Modular homes don't go down in value, in fact they are built with 20% more lumber than a site built home, they over build them to go into any jurisdiction's local building codes. For instance, the ones I put up come standard with 2x6 exterior wall framing & R19 insulation in the walls, low E glass, etc... They are super efficient homes to heat & cool. I sell the fact that it is built better, never got wet while building & cheaper to heat as pluses over other homes. There might be some exceptions out there, but for the most part you should have nothing to worry about. Does the home your looking at have 2x6 exterior walls? That will tell you if you have a good one.