Are older 1950s homes worth it even with the high insurance

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Are older 1950s homes worth it even with the high insurance

Reva Gaster
New to Real Estate · Panama City, FL · Member since 2016 · 1 post · 0 votes

I am looking at an older home to invest in to essentially turn into a MTR. I am just nervous about the home insurance as I have been hearing the home insurance on older Florida homes are between 3k-7k a year, specifically in the Panama City area. With the higher interest rates and high insurance rates, I feel like it can put me in the negative each month. 

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Nathan GesnerBusiness Member
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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
3y
Quote from @Reva Gaster:

I am looking at an older home to invest in to essentially turn into a MTR. I am just nervous about the home insurance as I have been hearing the home insurance on older Florida homes are between 3k-7k a year, specifically in the Panama City area. With the higher interest rates and high insurance rates, I feel like it can put me in the negative each month. 


That's just part of the analysis. If the numbers don't work, don't buy.

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  • Billy Daniel
    Rental Property Investor · Russellville, AR · Member since 2014 · 688 posts · 509 votes
    3y

    You'll just have to conduct the analysis just like any other house.  We have three houses built prior to 1950 and they are all positive cash flow and solid investments.  Can the rent justify the increased insurance and maintenance costs?  If so, go for it!

    1Reply
  • Cody Neumann
    Rental Property Investor · Surprise, AZ · Member since 2020 · 405 posts · 179 votes
    3y

    @Reva Gaster If you're unsure what the insurance cost would be I would get a quote from your insurance provider to verify the cost if it's a good deal.

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  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    3y
    Quote from @Reva Gaster:

    I am looking at an older home to invest in to essentially turn into a MTR. I am just nervous about the home insurance as I have been hearing the home insurance on older Florida homes are between 3k-7k a year, specifically in the Panama City area. With the higher interest rates and high insurance rates, I feel like it can put me in the negative each month. 


    That's just part of the analysis. If the numbers don't work, don't buy.

    The DIY Landlord Book4.7247 Reviews
    WebsiteView Page
    2Reply
  • Cameron MoorePro Member
    Insurance Agent · DFW, TX · Member since 2021 · 348 posts · 245 votes
    3y

    I know there are people making investments work in FL, but seems very hard! Reagrdless, make sure you have a relationship with an Insurance broker so they can always find the company in your area with the most grace in premium  (At that time) and can re-shop you when they turn for profitiability and go up in rate. 

    [email protected]682-593-4016
    1Reply
  • Crisselda Clark
    Investor · Colorado Springs · Member since 2021 · 58 posts · 39 votes
    3y

    Use an insurance broker to find the best rates, currently I have a home (120 years old) also not in Florida, about 3k a year with Travelers. We do just fine, set up as an MTR 4 units. 

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  • Nate Sanow
    I​nvestor & Agent · Tulsa, OK · Member since 2016 · 1k+ posts · 1k+ votes
    3y

    I don’t mind age if structure is sound. Everything else can be, and for me, often does, get replaced to make it brand new. Besides being great for creative finance, Brrrr really helps minimize the “problems” Of older properties by replacing them. 

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