when buying a cash flow rental property, is it important that it was built after a certain date?
If so, what date or rough range of dates do you use?
thanks!
It depends on where you are. I am in Houston and building techniques changes about 1976 - 1980. Also the use of leaded paint was out around that time frame. When I was in Virginia, I bought significantly older houses.
In New England, houses that are 250+ years old are very desirable…
I personally don’t think that the year built is as important updates to the mechanicals and structures…how old is the furnace? How old is the A/C? How old is the roof? How old and dated are the baths and kitchen?
All my rentals were built in the '50s and '60s but have been taken care of. I do have one with a pink tile bath and one with a tourquoise tile bath…but, you’d be surprised at the number of positive comments!
They all cash flow…
Keith
They all cash flow...
That is why I always say it depends on where you are. It does. In Houston, you need a 2 car garage, it North Carolina you don’t , the markets are different from state to state and town to town. You ask how old a house should be. You need to say where and what you want to do with it. Buy hold and rent, fix up and resell. They all need to be looked at differently.
The key is will it make money where I am for what I want to do with it. A house that will make a fine rental will break you if yoiu tried to sell it, a house that will make a lot of money if you sold it would be stupid to rent out.