Manufactured Housing Monday · Land Home Package Investing

Manufactured Housing Monday

Happy Monday!

Update on my Oxford project!

Good News- So far very impressed with the drywall finished model I went with on this project. Once you're inside the home, it makes a world of a difference. It feels like you're in a stick-built home. The molding, the walls, the lighting, something about the drywall just changes everything about being inside. If the exit price allows for it, I would say it is worth the extra investment so far!

One thing

@Kari Pesch

pointed out on our last Q&A, the drywall will "crack" more than a stick built home as the home settles, so prepare for that as the home adjusts. Nothing to be worried about, but something to keep in mind during the build period.

Bad News- My well came in $7K over budget.

Based on the quotes I got from multiple drillers, we expected to hit water around 250 feet.

Did not hit water until 460 feet. That extra 210 feet is billed by the foot, and it adds up fast.

Then when we finally hit water, it was not clean enough to use as-is. Added a filtration system to get it to a usable standard. That was another $6k on top.

So $15k turned into $21k and there was no single moment where I made a bad decision. I got multiple quotes. I called multiple drillers. I did the homework. It did not matter, because that is just how well drilling works. Sometimes you get lucky and you hit water sooner than you think, other times it's the opposite.

A few things I want you to take away from this:

Once you start drilling you cannot stop. If you pull out and start over you are paying mobilization costs twice. So the decision to keep going is not really a decision, it is just the reality of the situation once the bit is in the ground.

Depth is everything and nobody can guarantee it. Any driller who gives you a hard number is guessing. Get quotes, understand the per-foot rate, and build a buffer into your budget.

Water quality is a separate variable from water depth. You can hit water at the right depth and still need filtration. Price that possibility in before you start.

Now this is not a reason to never do a deal with a well. I pencil $15K for my line items. That has been my average cost over multiple wells. This is the first time I've had a well come in this much more over budget. It hurts, but it won't kill the deal. Just be aware of this when underwriting, and make sure you're not doing too tight of a deal that has private utilities.

More updates coming as we push toward CO. Drop your questions below.

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