Complete remodel vs modular home

[Mauricio Quintana]

I had a contractor suggest to me to take a small home (765 sq/ft) that is in need of complete rehab and replace it with a modular home.  I've never heard of anyone doing this, but I also don't have too much experience.  Has anyone done this?  Pros/cons?  Any agents out there sold one before?  Is the value tremendously different?

Thanks in advance,