Subdividing A Lot With 2 Duplexes On It? What Are The Gotchas?
I have a 11k sqft lot in Phoenix with 2 duplexes on it and would like to subdivide and sell one duplex. What are the common mistakes made in this process, how can I prepare for a smooth transaction?
Thank you!
I put up 20% of A and D and bank puts up 90 to 100% of vertical with 50% resales. This is fairly typical.
scott,
50% presales means the loan terms are based on your getting 50% of the units under agreement to buyers pre-construction--prior to your closing on the property.
Nancy
anyone?
typically speaking, modulars are never going to obtain the value a stick built home will have.
That being said, if the numbers work to make money then you will make money. It all depends on amount you have to invest and sales price and the overall health/desire of the market in your area.
Mods can not compete with stick and they are not any cheaper to build and they often lack quality.
Why do you think that so many developments restrict such homes.............because they are of equal or greater value?
NC_Yank
All the info ive seen from my research suggests that modulars of greater quality then stick built due to things like thicker walls, less exposure to the elements during construction, etc.
At my work, I see appraisers using stick built comps for modular home appraisals.
Just to clarify, im speaking about modulars, which are built in segments on site, not manufactures brought in pre built
Thanks for the opinions so far!
In my state within the last couple of months I bidded through Hud on a modular home (brick foundation) and lost. The winning bid was $160,000. This is an area of investing I would definitely like to pursue as well. Out here you can buy them (50K or higher) already made put them on a lot and have a brick foundation built and resell it for 100K or higher. Once you give it a brick foundation it becomes a house which appreciates.
see commercial modulars at
britco
and homes at nationwide-homes
do a virtual tour of the Sugarhill, it will impress
(put in the www the dots, and com at the end as this would not let me put in the url)
[ Edited by webuildit on Date 07/13/2005 ]
[ Edited by webuildit on Date 07/13/2005 ][ Edited by webuildit on Date 07/13/2005 ]
webuildit
I know the resell amount is area specific but in general how much do these things run?
I called the number on the site and I was told they start at around $89,000 and higher. Out here a mobile home with brick foundation literally doubles in price. I can only imagine what would happen if somebody had one of these built on their land. Another thing I like about them is they are built quick within an 8 week timeframe!![ Edited by GQ on Date 07/13/2005 ]
Webuildit,
If you think $100.00 per square foot is a good deal then come to the Cabarrus County area and get a custom stick built home for $70.00 per square foot.
$100.00 per square foot will put you in a nice all brick home with the trimmings.
NC_Yank