All Forum Posts by: Account Closed

@Henri Meli 3 units was the maximum allowed by zoning on this property. I'm developing an 18 unit modular apartment project now I hope to start construction on in 2020. I'll post about it once I do.

 These don't sound compatible to me.

https://forum.nachi.org/t/manu...

That link might help.

I think the easiest way to tell would be if you see a steel chassis under the home that has axles. Modular homes could also be steel framed or have steel floor perimeter beams so looking at the edge may not be enough.

The other thing is if you can find the tags. Look in medicine cabinets or water heater closets, areas of that nature for a tag. A modular home would have one from HCD.

A mobile/manufactured home would have one from HUD.

@Justin Ellis probably a mobile home then but you'll want to make sure

@Justin Ellis

Modular and mobile are not the same thing. Modular homes are built to the same codes and regulations as traditionally built homes. They'll appreciate just like most other homes.

Mobile homes are built to federal HUD code and depreciate.

What do you have?

@Gabrielle Simmons

Modular homes are built to California Residential Code and do not depreciate

Mobile Homes are built to federal HUD code and do depreciate.

Are you sure of what you have?

I think it's unlikely you'll find the costs savings you're expecting out of a modular build on a single family home. Where modular saves you money is time which generally means less spent in general conditions and financing costs. Around New Jersey there are a lot of modular single family builders. Start reaching out, they're likely to be able to to tell you what it would take to get from start to finish and handle the entire process for you.

I find this surprising but I'm not really sure how to feel about it as being good or bad. From the descriptions in the article it sounds like they're talking about "Park Model Trailers" which are specific things and follow RV building codes. They're limited to a max of 400 sf. and can include lofts, unlike HUD units which specifically bar lofts for some reason.
I priced a custom park model out for a client about a year and a half ago. 400 sf. This quote is directly from the manufacturer:

Typically, a standard Park Model with a double loft will run between $35K & $45K. However, with special windows, special exterior siding and upgraded cabinets, countertops and flooring they could run well into the $50Ks or even the $60Ks.

Anyone else building 400sf for $150/sf.in San Diego right now? It'll be a little more with the utility connections and other site work.

I just picked up the domain prefabgrannyflats.com
Probably about time I did something with it...

Are you willing to move? Would your current house cash flow if you rented it out? I think one of the best strategies for someone just starting out right now is picking up a 2-4 unit property with a 3.5% down FHA loan. This would be a low barrier to entry and leave you with that sizeable chunk of change in your hand to do something else as well. To stay on the up-and-up you'd have to live in in one of the units for 12 months.

I'm in the process of building my own home and looked into this about a year and a half ago. Below are some of my findings then and they may be regionally exclusive to Southern California. I'm not sure how many of these lenders operate nationally.
I wound up going with US Bank for the purchase of the land and they would have done a 20% down payment loan on a 3 year ARM for it. I wound up putting down a bigger down payment out of choice:

California Bank & Trust
50-60% LTV
2-3 years interest only followed by ARM
Amortized over 10 years
6% APR w/ 0 points currently

BBVA Bank
Up to 80% LTV
2 year term
Amortized over 15 years
5.5% APR w/ 0 points currently

Banner Bank:
75% LTV
15 Year Note, Fixed Rate
or 3/1 ARM Amortized over 15 Years
5.5% APR w/ 0 points currently

FHA One Time Close
96.5% LTV
15 or 30 year fixed rate
Must complete construction within 1 year
Max Loan Amount limited by FHA lending limits per county

US Bank
Up to 80% LTV
3/1 ARM
Amortized over 30 years
5.75% APR w/ 0 point currently

HomeStreet Bank has a similar loan to US Bank's. I started working with HomeStreet and they actually handed me off to US Bank. Most of these above also have a "one-time close" construction loan component that rolls into permanent financing after construction.

The HomeStreet bank one seems very attractive. If you have a current home they order a rent comparison to offset that mortgage to not hit you for the rent payment when qualifying for the construction loan. Their construction loan is currently at 4.5%, amortized over 30 years, fixed for 7 years. Payment is interest only during build phase. The construction component of most of the others were all similar.