Updated over 3 years ago on . Most recent reply
Vet looking to buy house built in 1909
Hello,
New here and new to real estate investing.
I am a military Vet using the VA loan here in Medford OR, and I am looking at a house built in early 1900's. It has a fairly new 2bd 1bath smaller home in the back that is being rented out and a really good size front house all on one lot. I was wondering what I need to look out for and what to ask the real estate agent and the owner when going into something this old. I know its really open ended and half of the answers could be super simple but any and all info would be appreciated.
Most Popular Reply
Sounds like it could be a great househack deal!
VA loans are great products, if you already have a lender picked out, I'd send them the listing from zillow or Redfin or whatever app you use and get their opinion on any potential hiccups that could come up in underwriting.
Underwriters could have issues with the two units if they are separately metered or not (have their own water and electric meters, etc.), or if there’s a current tenant and lease in place, or how it’s used (they’ll use a term called highest and best use in some situations to determine if the rental income came be used towards your Debt to Income Ratio). Also, an older home like that may have its unique hurdles. Most likely it’ll have galvanized pipes which may be corroded inside. Eventually, you may need to replace (depends on condition of plumbing). Or the electrical is Romex, it could have single pane windows, etc. Older homes tend to have really good bones though. Other things to consider are if it is in a designated historical district, that can definitely change how you rehab it if it’s needed. My wife and I bought a house built in 1892 similar to this deal and it’s been a great househack but it’s been a lot of work updating.