All Forum Posts by: Jinglei Cui

I don't want to use an absolute but at least in Texas and from what I can tell everywhere else (but maybe there is an outlier) you do not disclose that a home is a modular, same as you don't disclose the build method used in any stick build home or if certain parts are add-ons or anything. Modular is simply a tactical decision.

Eric and I have been incidentally tag teaming these modular posts recently, he has designed and discusses that aspect while I have bought 1 this far (FYI it was not disclosed as a modular, appraised in the same manner as a stick build as there is nothing on the form for any indication, and neither my property manager, nor the bank, nor my agent had any idea). I knew what it was because I noticed the way this older modular (early 2000's) managed the seam. In the newest ones you shouldn't be able to tell at all unless you take the walls apart 

Currently I am researching duplex modulars. I have found two builders that have variant quality. 

One is at $100 per square foot including build and delivery, the layout and finishings are very nice. The company is "Modular Homes of America".

Another is a company that mostly builds manufactures (mobile) homes but can also build to Modular standards. These guys have a  duplex that goes for $60 per square foot. The finishings are not as nice and the footprint is a little smaller.

Point to keep in mind is this does not include land, land prep, foundation, driveway, utilities, management. All of that can add another $60- $100 per square foot.

My goal is to get really good at the financing, land aquisition, and land prep and have the home built and delivered, and then refinance out.

@Jinglei Cui this topic has been coming up a lot recently on BP. I built my own modular house and have designed a few. They definitely save time and money depends on a few factors.

The biggest thing to do is to start your design with the modular requirements. The goal is to get the design to work with the least amount of boxes that have to be transported. This will save lots of money.

The next thing is to get as much of it as possible built in the factory. The problem is that the majority of companies have ugly finishes or will not do anything custom.

These two factors are the biggest in saving money and time. I built my house in 4 months and I know I can get it down to two months next time. Everything goes much quicker so you need to have a lot of money up front.

Resale value. I believe it is the same. It depends more on the design and aesthetics of the house. If a buyer sees a beautiful well kept home they do not care if it is modular, built with 2x4 or with masonry. No one can tell if a house is modular unless they are told. Others on BP don’t agree with me and it may depend on the region.

Loans are more complicated because a lot of banks don’t deal with them. You can find them but you will have to do lots of calling. I had to call over 30 banks. The issue is that the loan is normally disbursed after certain milestone throughout 8-12 months of a project. With modular it is basically three withdrawals within 3-4 months. One for site work, one huge withdrawal when the modular units are delivered, and the last one at final completion.

Lastly, if you like modular construction check out Superior Walks for basements. I used them as well for my house and they installed 156’ linear feet of wall in 3 hours.

I believe in modular construction if done correctly and there is a lot to know to make it work to your advantage.

Good luck.

I own one modular as a rental. To answer the question about cost, I don't think that it will save much money in most cases. At least not the percentages quoted. As far as build time, I agree it's a faster way to build. And I suppose the time to completion can save some money costs.

I do feel that modulars have a significantly lower resale value than a stick built house. Part of this is that most municipalities don't differentiate them from manufactured homes (trailers). They are certainly not like a "doublewide" or other mobile home and in fact are not designed to be moved again once they're sited. I like them overall but they're a pretty small percentage of the housing market.

Hi Jinglei,

Here are 2  books on apartment investing I really enjoyed. I got the audio-book version of both of them.

- Wheelbarrow Profits: How To Create Passive Income, Build Wealth, And Take Control Of Your Destiny Through Multifamily Real Estate Investing - by  Jake Stenziano and @Gino Barbaro

- Crushing It in Apartments and Commercial Real Estate: How a Small Investor Can Make It Big -  by Brian Murray

Brian is also a guest on 2 podcasts here on BP: Shows #212 and #126. Also, check out Gino's  Guest Podcast Show #182, and his amazing blog with lots of great content on multifamily investing.

@Jinglei Cui 

1. Financial freedom with real estate investing

2. How to create wealth investing in real estate 

3. Commercial real estate investiing for dummies

4. Best ever apartment syndication book

5. Multifamily property workbook

these are just a few.