I have under contract currently 3 one acre vacant lots in Youngsville, NC which is about 25 minutes North of Raleigh. One of the lots did not perc for a septic system so I plan on combining it with the one next to it as all three are in a row next to each other. Our plan is to build on one lot and eventually build on the remaining acre to have as a rental. Initially, we'll live in the first one we build but don't plan on living there for more than 5 years, and we plan on keeping these as long term rentals.
This particular subdivision has approximately 30 or so houses, all on at least one acre and all but one are double wides on permanent foundations. Most of these double wides are not in great condition. The one stick built home in the subdivision is directly behind these lots I plan on buying and it's a two story, 2,200 sq ft home that was built in 2019 and sold in January of this year for $250k. All the double wides were built around 1998 and have been owner occupied for a long time.
My question is, should I just plan on putting new double wides on permanent foundations on these 2 lots, or should I consider stick built? Right now, lumber is obviously ridiculous and I don't want to overbuild for the area. On the other hand, I'm concerned that the lower price point to place a double wide will come back to bite us with depreciation in the future and resale ability. Are double wides on permanent foundations considered separate from the land it's built on, i.e. personal property vs real property? Will the stick built cost more than what it'll be worth for the area?
For reference, not including the cost of the land itself or the cost of clearing the land, grading, placing a septic, well, and foundation: New manufactured home/double wide 3br 2 bath 1650 sq ft starting at $116,900. New stick built home 3bd 2 bath 1421 sqft starting at $142,000.
I'm so back and forth on what to do with getting the most value for our dollar to begin with, but also not screwing our future selves. Your thoughts? Thanks in advance
