Three bedroom house for just $24k? What is wrong with this?

[Wrecked944]

I just got a catalog from a company called Tek Supply. Never heard of them before. But they advertise the following three bedroom house for sale as a prefab for just $23,999 with free shipping which is just $32/sqft. Sooooo, my fellow eagle eyed Pelicans...why is this too good to be true? Where is the catch? Why shouldn't I buy four of these and plop them down as rental units?



http://www.teksupply.com/webapp/wcs/stores/servlet/ProductDisplay?catalogId=10053&storeId=10001&productId=18291&langId=-1&division=TekSupply&parent_category_rn=35033&top_category=&breadcrumb_trail=Prefab+Homes+%26+Storage%7CPrefab ricated+Homes&breadcrumb_categoryIds=35030%7C35033&isDoc=

Three Bedroom Ranch 746 sq. ft.
Item# 104682
Energy efficient, affordable, three bedroom, ranch style home can be assembled in just 2- 3 days with your basic tools!
• 23'6" X 31'6" (746 sq.ft.).
• Three bedrooms, one bathroom.
• High quality, pre-engineered building structures.
• Easy-to-read blueprints. All components are numbered for easy assembly.
• Can be constructed on slab, basement or optional flooring.
• Easy to heat and to cool.
• Maintenance-free exterior.
• Thermal insulated walls and roof.
• Pre-hung, insulated (1 3/4” foam) exterior steel door.
• All doors (exterior and interior) are handicap accessible.
• Five 3' x 3'6" Vinyl, sliding windows with screens.
• Shutters provided on both sides of entrance door and front windows.
• Plumbing, electrical, and heating are the responsibility of the homeowner.
• Kitchen cabinets and counter top included: 2 – 36” base cabinets, 1 – 36” sink base cabinet, 2 – 36” wall cabinets 30” tall.
• 24” bathroom vanity base cabinet included.
• All exterior and interior trim included.

Exterior panel construction:
• 1/2" MDF substrate with panel overlay.
• 2 5/8" expanded polystyrene core (R-11).
• Exterior sheathing of 3/8" Douglas Fir plywood.
• Exterior finish is pre-painted, rustic cedar embossed aluminum.

Roof panel construction:
• 1/2" MDF substrate with panel overlay.
• 2 5/8" expanded polystyrene core (R-15).
• White embossed 26 gauge steel exterior.

Room Specifications:
• Three 11'4" X 8'8" bedrooms, each with a 2' X 4' closet.
• 5' X 7'6" bathroom.
• 9' X 9' 4" dining/kitchen area.
• 21'4" X 14'6" living room.

Our Price: $23,995.00 / EA

[B D]

Why shouldn't I buy four of these and plop them down as rental units?

The Big Bad Wolf may come and blow your four homes down.

Good price but those are tiny rooms, my CA King bed is bigger than those rooms I think. Is there a two bedroom version?

[RickM]

Eagle eyes? There's only one small pic.
It seems to be a glorified shed kit, perhaps good for a hunting cabin.

[Vipergrün]

"Occupants of mobile homes and manufactured home, mandatory evacuation is in effect" Typically built with 2x2's and not 2x4's.

Nuff said

In Nowata, OK, you can buy a REAL house for less than that. I inheritef one from my grandmother and had to split the proceeds of the sale 5 ways!! I think I got 4K when all was said and done...

[dd74]

It doesn't look as if there's a rear to the house...

[tabs]

I can see it now....buy 4 of them and put them on a lot in New Port Beach, CA and sell them for 3.3 M.....

[red-beard]

Originally posted by bb80sc
In Nowata, OK, you can buy a REAL house for less than that. I inheritef one from my grandmother and had to split the proceeds of the sale 5 ways!! I think I got 4K when all was said and done...

I have family in Nowata...hmmmmm....

[Wrecked944]

Actually, I called Tek Supply and apparently these are neither mobile nor "manufactured" (same difference). And there are no 2x2's or 2x4's for that matter. They are made from structurally insulated panels (SIPs) which are normally considered a pretty high quality construction product which is why I wonder at the price. As for the size, well, I'd prefer a 1000 sq ft model but 746 is the current limit. Then again, as a kid, my family had a house much like these and I didn't feel cramped. But regardless, I am thinking of using them as rental units - not dream homes. So the CaliKing bed is likely not an issue. That being said, I'd still need to install nicer flooring (maybe some pergo or tile), six panel interior doors, bigger widows, high quality lighting fixtures and such because I refuse to be a slumlord. But I've done those things before to small units and they aren't terribly expensive (assuming a unit of less than 1000 sqft). Figure another $5k-$10k to outfit the house nicely.

The rep on the phone said it can be delivered anywhere in the US in 30 days with free shipping. I haven't written any checks...but I am intrigued.

I also asked about building codes and the rep agreed to send me more details by mail. I could not get him tell me who actually makes the houses - only that it is a firm in Iowa. I'd like to find out who the builder is and get more details.

And while I may be able to buy a "real" house in OK for less than $24k, can I rent it for $1000+ per month? Around here, crappy condo units are selling for $169/sqft. So $32/sqft sounds sweet - even if I have to drop in another $10k in improvements.

[dad911]

Only walls and a roof, no floor system (build on a slab). No mechanicals (no electric, no plumbing) means no sheetrock? Standard front door height is 6'-8", so it looks like interior ceiling height is 7' or less.......

[Wrecked944]

Originally posted by dad911
Only walls and a roof, no floor system (build on a slab). No mechanicals (no electric, no plumbing) means no sheetrock? Standard front door height is 6'-8", so it looks like interior ceiling height is 7' or less.......

Interior shots on their web site show vaulted ceilings all around.

[dd74]

Originally posted by tabs
I can see it now....buy 4 of them and put them on a lot in New Port Beach, CA and sell them for 3.3 M.....

LOL! Location, Location, Location...as we saw with Laguna Beach...

[tabs]

Of course that lot is going to cost you 3.2M to buy...

[tabs]

and the guy who going to buy it from you for 3.3M is going to tear them down and put a mega mansion on the lot

[dd74]

Originally posted by tabs
Of course that lot is going to cost you 3.2M to buy...

Hell yes, it will. In The Valley, I saw a ratty old lot large enough only for a 3 bedroom house going for $1 million. No house included, but all the weeds and dirt you can want.

[Vipergrün]

Originally posted by red-beard
I have family in Nowata...hmmmmm....

Now THAT is scary, I think there are only about 20 people left there.

[red-beard]

Well, had. They are "there" but not presently living. My Uncle was the Principal at the High School for many many years.

[928ram]

MDF, isn't that that stuff that's just thick cardboard?

[dd74]

Originally posted by procon

Odd that "the rep" wouldn't disclose the builder.

Well, would you take a house seriously that was built by the Three Little Pigs?

[M.D. Holloway]

Maybe you could stick a few of those outside a GM or a Tyson plant, fill the BR with a Cali king and change by the 1/2 hour.