Hi All:
I am new to real estate investing and will really appreciate if someone can provide some help on the followong:
What are the implications of age of building/house that you are investing into. In worst case scenario - could someone be stuck with it forever say if it was built in 1967? Also, are there any particular kind of things to avoid (structure wise, plumbing wise, electric …)
Thanks
Alvin
There are a million places this thread can go, let’s start off by why you are buying. Rental? Rehab? Etc…
This would be for rental. I realize it is somewhat of an open ended topic, but I don’t really have any specifics on this. That’s what I want to get information about.
Alvin
Well for starters it wouldn’t hurt to have an inspection done but a licensed inspector to point out any major issues. You’re going to want to be sure the electrical is up to snuff, this is a biggie. Also, you should check into the age of the HVAC systems and roof. As long as everything checks out on the inspection and the majors are in good working order there is no reason why you should skip over the older buildings. And in my area 1967 is newer than a lot of what’s out there. Heck, I’m thinking about one from 1885 that’s been on the market near me for a while.
I personally like older buildings because they often times have a lot of charm and personality that is absent in new construction. In addition, they often sit on bigger parcels of land too. Depending on the area, it may draw in renters and may command a premium. I have a house built in 1919 and got a lot of compliments when I was showing it to prospective renters. If you can buy it at the right price and the inspection clears like Rich said, go for it.
1967 isn’t really that old LOL! The house I am working on is from 1920. Luckily the wiring had already been updated prior to my purchasing it, but you cannot find the craftsmanship and detail in houses now.
Original woodwork and glass doorknobs are going to be huge selling points.
Definitely have an inspection, you want to make sure you don’t have real hidden surprises. Older homes also tend to have less insulation in them overall. And check for foundation issues.
Yeah, 1967 is really young. I’m working on a sale now where the house was built in 1850! Most houses in this area were built in the 1880-1920’s.
As for being stuck with it forever, there’s really no such thing, as long as it’s priced right, it’ll sell. Of course that could still mean you pay $200k for a place and then you only get 150k when you sell.
You’re really asking a question that’s based on your local market so comments from the rest of the country might not apply.
I have a bunch of buildings from the 1800’s. My 6 unit building was built in 1835. Many of my houses have coal chutes in them (some still have chunks of coal in the basement). I will be picking up a duplex next month that has a hidden basement below the basement (from the underground railroad in the civil war).
1967? That sounds brand-spanking new to me!
Mike
Wow…1835! Mike, how does the maintenance on older buildings like those compare to newer buildings? Do some become a complete $$$ pit?
Seriously. I’m thinking he’s out west. Huge sections of the town I live in were built in and around the 1920’s, only a few portions on the outskirts are new developments.
Structurally they are probably far more sound. As far as the mechanicals as long as the systems are updated you’re working with something very similar to what is in a brand new house. Think about it, is everything still in place from 1835? Heck no! The plumbing, electrical, hvac, etc has surely been updated since then. It’s just a matter of when it was updated and you know that when you buy so you can avoid the major headaches of outdated systems or purchase low enough that you can replace them as part of your rehab and still make good money each month.
Great. Thanks to all for sharing your experiences.
Alvin
Think about it, is everything still in place from 1835? Heck no! The plumbing, electrical, hvac, etc has surely been updated since then.
HECK YES! Plumbing? Electrical? HVAC? I’d have to be rich to provide all that! Well, to tell the truth, I did paint the outhouse about 2 years ago (I must be getting soft).
Mike
Outhouse? You mean they don’t have to do like the bears do and go in the woods anymore? Damn you are getting soft!
Hey Rich, you have any pictures from the house you mention from 1885? We are going after a HUD that is close to 100 years old and is full of character! I think that’s what I like about the historic homes!
Hey Rich, you have any pictures from the house you mention from 1885? We are going after a HUD that is close to 100 years old and is full of character! I think that’s what I like about the historic homes!
The MLS pic blows so I’ll drive by and snap a pic when I am on that side of town.