First-Time Homebuyers Torn: Great Price in an A-Class Town, But Huge Rehab Costs

[Myoungsu Son]

My wife and I are considering buying our first residential property and would love to get your opinions. Here’s our situation:

Pros:

-The price is $650K for a multifamily, which is pretty good considering it’s in Massachusetts and located in an A-class town.   -It’s a duplex (one unit is 3 bed/2 bath, the other is 1 bed/1 bath).

• - The house has a lot of potential with its historic charm 
• - Wonderful yard 

Cons:

- It’s very old (built in the early 1800s) and has a lot of issues.

• -There’s a structural problem caused by termites and wood beetles. There are also temporary supports in the basement. Some rooms feel tilted, and the living room floor is uneven due to this weak support system.

- The electrical system is outdated and needs a full replacement.

• -The interior and exterior are in poor condition—floors, walls, and ceilings all need work. This includes replacing all walls and ceilings in the 3 bedrooms. Installation needs to be added throughout the house. 
• - The HVAC system and boiler are both old and will need to be replaced soon 
• - The roof will need to be replaced soon 

On top of that, after putting 20% down, we wouldn’t really have enough funds left for the necessary rehab.

So basically, the house has a lot of problems, but it’s in a great town to raise a family and the price is attractive. I’m torn about whether it’s worth moving forward. I’d really appreciate your opinions and advice.

[John Clark]

No reserves and huge structural problems. Hard pass.