New guy needs opinions on a 156 year old house
Hello all! The wife and I have been lurking for a while learning as much as we can and reading up on real estate while we saved up for our own home and then began saving up for our first rental property. However, in the last two months we've gone from "we'll buy our home next year and maybe get a rental property a year or two after that" to closing on our home in the next few weeks and an opportunity fell into our lap to have our first rental property in the next few months.
Back story on the property.
My wife's uncle currently owns a single family home that was built in 1860. He inherited it from my wife's great aunt when she passed about 10 years ago and has sat unoccupied since then. Her uncle lives in Florida while the property is in Illinois(2 hours from us) so he maybe gets out to the house once a year. Paying the property taxes are just a drain on his bank account and he wants to get rid of it, but wants to keep it in the family. So rather than sell it, he has offered the house to us. He does not want to be compensated, he just wants us to take over the property taxes($1400/year) and we can keep it as a weekend getaway destination or rent it out. Otherwise he will just sell it.
The house itself is a two bedroom, one bath with just under 1000 square feet. We know that it needs a new roof, new drywall in a couple rooms, new electrical, new plumbing, new paint in and out, refinish hardwood floors, and new appliances. I can do most of the work myself so I am estimating a $20k rehab.
After all is said and done, based on comp rentals in the area and with no mortgage, it should be able to cashflow $338/month after prop taxes, insurance, and expenses.
We're going to go see the house in a month to check everything out. Being such an old house, what sort of things should I look for outside of the norm? Or should the age of this house put up a red flag right out the gate? Any help would be greatly appreciated!