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!

Comments(10)

  • GFous14th July, 2005

    I put up 20% of A and D and bank puts up 90 to 100% of vertical with 50% resales. This is fairly typical.

  • NancyChadwick15th July, 2005

    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

  • thelemur22nd June, 2005

    anyone?

  • woodsong22nd June, 2005

    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.

  • NC_Yank26th June, 2005

    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

  • thelemur27th June, 2005

    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!

  • GQ7th July, 2005

    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.

  • webuildit12th July, 2005

    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 ]

  • GQ13th July, 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 ]

  • NC_Yank15th July, 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

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