Pre-fabs

[Roger Lin]

Hi,

I am a relatively new rehabber. Although I enjoyed my experience with my first rehab, I am beginning to feel like sometimes building a new house might make more sense. I started looking into pre-fabs and was intrigued to find out that with a pre-fab, you can bring the cost of a new house down to about $35-45 per sqft. In the D.C./No Va area that I operate in, it means building a 2000 sqft house for less than $100,000. Considering the high price of houses here it seems to make a lot of sense to do that to properties with high land value but with a worthless house.

Other factors that make this attractive to me are that it takes 28 days for them to build it and one day to install it. Also, with a pre-fab, your construction cost is fixed when you order the home. This eliminates two of the most important uncertainties in the rehab business, the time and cost of construction.

Has anyone done this?