Buying old multifamily properties

General Real Estate Investing
1

Hi All

I am interested in knowing more about buying older (construction date 1960-1970 or so) multifamily properties.

Would really appreciate if someone could share their experience / knowledge about pros and cons of getting into such investments.

Thanks
Alvin

2

Well, your in luck. The average apartment building in the US is 30 years old.

Ask some more specific questions about apartment buildings if you want something more than an equally vague answer.

3

That’s not old. One of my apartment buildings was built in 1835!

Mike

4
That's not old. One of my apartment buildings was built in 1835!

Mike

Did you use some type of grant to either purchase or renovate that property (assuming it has indoor plumbing :wink: )? I’m getting pestered by an agent to buy a historic hotel that also predates the Civil War but the only way it would make sense to purchase this POS is for a grant to cover most or all of it. Thus far the biggest local grant I’ve found was only $100k.

5

Danny,

No, the building was in good overall shape. It needed some cosmetic rehab, but only about $3,000 worth.

Mike

6

Hi

The building I am considering was built in 1963. Most of the $400k cost of the building is for the land, probably 50-70k for the structure. I am most concerned about the resale and being able to recoup the money when I resell say down 5-7 years. What does one have to care for before making such a purchase.

Thanks
Alvin

7

That’s old? ??? I’m looking at one from 1875 or so. Its a beautiful house on the outside and been nearly completely renovated on the inside. All that’s left is the kitchen on the first floor and the current owner has cabinets and flooring already purchased and is offering a credit to install them. In CT a lot of multis are from the early part of the century. There really isn’t much special about them except that many need minor or major rehab, not a bad thing and offers you a good shot at a bargin buy.

8

I’m hope it was recently renovated or your maintenance fee will be huge.

9

For me it doesn’t matter if it was or not, if it wasn’t that’s just another bargaining chip to get a lower price.