Stick build vs manufactured new build

[Cody Cabral]

Looking for pros and cons.

I have a 5 acre lot in Arizona that I have now subdivided into 3 lots. The middle lot has the original 2,000 sq ft manufactured home on it and stays rented.

My question is... on my now open two lots should I build stick homes or go with manufactured? These will be intended to stay as rentals for my personal portfolio. Sell as needed in the future.

[Brenden Mitchum]

Hey @Cody Cabral, welcome to the BP community!

You're going to get two camps of people answering this question as has already been demonstrated: 1. Manufactured homes depreciate in value so stick built is better. 2. Manufactured homes are cheaper so allow for better ROI.

The "right" answer to this question really just depends on where you live and what the tenant base is. Is there more demand for mobile homes or stick built in your area? Are there already a ton of mobile homes in your area? Does your market need more? If there is demand for affordable housing, you could definitely go that route, but understand that if there aren't a ton of them, you will almost definitely fetch lower rent in one than you would in a stick built. If there is not much demand for affordable housing, stick built may be a better option. Either way, best thing to do is to analyze your market and run your numbers accordingly - make it as much of a "science" as you can. 

Hope that helps a bit and please, feel free to reach out anytime if you have other questions or just want to chat!