Posted by Jimmy on September 07, 2002 at 13:11:56:
For details re: modular, see my private reply.
Whether to build or buy, that is your question.
I debate that same question every day. In my area, I can buy them for less than I build them. and the rents are roughly the same (which is why I am doing this). But the new construction means I get the entire useful life of the structure. and most of maintenance issues are years off in the future.
So I pay less for the 20 year old buildings, but I know that some big ticket items are lurking. roofs, heating and AC, inevitable water damage, windows, etc.
construction drives me NUTS. even modular construction, which takes half as long as site built, drives me NUTS. There are a lot of “uncontrollables” embedded in construction. and I am a control freak. acquiring existing structures is EASY.
but I have to admit, new structures are wonderful, once finished.
Modular Home Investment - Ray?? - Posted by Mike C.
Posted by Mike C. on September 06, 2002 at 13:13:34:
Recently I’ve been invited to explore the possibility of putting up modular homes (not mobile or manufactured homes) from a builder in my investment goup. Could anyone recommend how to approach this strategy and any applicable books or courses that could help?
I’m exploring the risk/reward when compared to buying single family houses that are already up.
Re: Modular Home Investment - Ray?? - Posted by ray@lcorn
Posted by ray@lcorn on September 07, 2002 at 20:09:43:
Mike,
New construction can be profitable, but there is a learning curve. Unfortunately the tuition for the lessons can be high.
In a previous life I was a contractor that specialized in modular construction. I did mostly turnkey jobs, many for retail buyers and some for investors. I’ve used modulars in single family, multi-family, office and special purpose projects.
The modular structure is actually far superior to conventional stick-built building. But the finished costs are comparable. The savings are in the time of construction and the quality of the product. But believe me, both can disappear in a hurry if every detail isn’t carefully monitored. That’s the learning curve…
As to whether it is right for you, it depends on the deal the builder is offering, your own experience level, and of course your market.