I keep finding these old houses listed as built 1900 ( sometimes they write 1900 when they dont know when it was built but)
they look decent inside and would diffently cashflow.
I’m concerned that their will be hidden costs becuase of the age of the structure. a home inspection might over see a problem or if it is truely 100 yrs old a problem could develop soon say foundation within a year or 2 and cost a bundle.
any insight from experience with these older home rentals.
Old homes work well around here.
If the foundation has lasted for 100 years, it isn’t likely to suddenly decide to settle next year. It’s done all the settling it’s ever going to do-- unless the nieghbor is drastically changing the local topography and redirecting run-off.
Wiring might (probably) need to be modernized. Build that expense into the price you offer.
I’d check for lead pipe and asbestos.
The most likely problem to run into is the wood of the support beams having come into contact with dirt and letting the bugs into the wood.
A good inspector should be able to see all those problems.
The old homes around here are lovingly restored and bring super premium prices, both for sales and for rents. That’s something that is going to vary a lot by area.
I consider houses built in 1900 to be practically new!!! I have one apartment building that was built in 1835! These older properties will probably outlast many buildings that are being built today.
Mike
Speaking from personal experience, I sold my 2004 SFH from a 1827 SFH and have had LESS problems in the older home than in the newer home. The older homes were built when craftsmanship actually meant something. I’d take an old home over a new one anyday!!! Just make sure you have a good home inspector and good estimates and you’ll be fine. Don’t forget to add a 5% contingency for any overruns.
PS I’m in Florida and this old home has outlived several hurricanes!
One more problem with old houses is lead paint. So budget for lead paint abatement in your offer.
Don’t mess around with it because of the liabiltiy factor. Get it properly and legally dealt with.
According to HUD standards, lead based paint needs to be encapsulated, not removed. I don’t worry about lead based paint. I encapsulate it and forget it!
Mike
well thats another thing in the city i’m looking to invest they have a grant program that gives you $8,000/ unit to make it lead safe housing for children under 6 years old.