All Forum Posts by: Account Closed

They're not mobile homes. Yes, they'll appreciate.

Still working on it, @Dave Yen

@Mike Wood "modular" doesn't mean off the shelf. Modular buildings can be designed and built however one would like. You're correct there's not likely much cost savings on a small project. 

I'd like to know what code issues 3+ units have to comply with. That threshold is 5+ units. 1-4 Units projects are generally treated the same by the building code.

One important thing to remember on a development project less than 5 units is that you're likely to look at residential lenders that lend up to 4 units but you don't have to. Some lenders are bound by a 1 unit cap, some 2, the lenders that can lend up to 4 are still on the residential side of things while lenders that lend on 5+ are generally commercial lenders. You should contact all of them. The lender that did the construction financing for my 3 unit project was a commercial lender and I had to go with a commercial lender for the takeout loan as well because I wanted a larger loan than the residential guys could do. It was mostly local private banks I dealt with. If there's enough meat on the bone in your deal and the lender agrees with your proforma it helps smooth things over. In my experience they want to see experience in construction so you may need to take on a partner with that if you don't have it. 

I don't know if you're just asking about the modular side of things. Square footage wise it sounds like it will be about the same. The modular manufacturer if you can find one to build what you want probably won't care. The more bathrooms and kitchens the more expensive it will be, that much is obvious right? You'll get a higher $/sf in rent with the smaller units so it may be more bang for your buck to go with the 4 unit. Lending caps may be higher for 4 units than 2 which could mean you can get better financing. There's a lot of factors. I disagree with @Nathan Gesner, diving right in is great. I dove in head first to a development/rental deal and it was the best thing I ever did. Good luck.

No, I'm not familiar with Tulsa. Every city has its own zoning and naming for different types of zones. To further complicate things building codes have similar names for occupancy categories. Realtors that attempt to convey zoning information will sometimes use Building Code occupancy names such as "R3" to say you can build a single family house on a parcel, which is correct for the building code, R3 occupancy includes single family homes, but not necessarily the correct name for the zoning in that jurisdiction.

RS3 at face value might mean something like Residential Zoning, 3 Units. Which may mean 3 units are allowed on each parcel or may mean something like 3 units per acre. I really wouldn't know without diving into Tulsa's municipal code. Density (unit count) is generally displayed on a per square foot or per acre ratio. Such as 1 Dwelling Unit per every 1,000 square feet of lot area. Or 35 Units per Acre. You need to research your lot.

It's completely dependent on the zoning. You need to look online to see if Tulsa has a zoning tool for you to verify or you can go in to the planning department and ask questions. They should be able to straighten you out.

Every builder does this. I prefer to call it a BBRR, Buy, Build, Refinance, Repeat. It's a great strategy.

@Charlie MacPherson

I work entirely in the modular AEC space and have worked on a handful of mhp projects that sought to replace aging trailers with new modular homes. There's a super important caveat in California that will only allow this if the park was established past 1982. You should make sure there's not something similar in Maine.

One project I worked on that did this successfully was in Napa Valley where they turned an mhp on a beautiful property into a hotel destination with rates of $400 night: The Carneros Resort and Spa. They used both new manufactured units and modular units on this project. 

Best of luck.

@Arden Ballard you should check out my story of a 3 unit prefab development: