Rental Property Investor · Los Angeles, CA · Member since 2017 · 19 posts · 7 votes
I've seen the rule of thumb that you shouldn't buy a property older than 30 years for value-add multi families. In some markets (like Cincinnati) the up-and-coming areas consist of properties that can be much older; between 50-100 years old. Also, for my budget I'm finding that most of my opportunities are between 50-75 years old. Mind you, I'm just searching MLS sites.
If a property is in solid shape and needs mostly cosmetic or other basic improvements but was built in, say, the 1950's, is the age a deal breaker?
Am I seeing mostly older properties because the younger properties are mostly off market?
Rental Property Investor · Woodbury, MN · Member since 2018 · 299 posts · 299 votes
6y
Age isn't the end all be all but it is something to consider. Minneapolis and St. Paul have a number of solid brownstones built in the late 1800s through the mid 1900s and many of them have gone through extensive rehabs over the years. If you are looking pre 1960s you will likely want to perform a more thorough physical due diligence paying close attention to the electrical and plumbing. While looking at the plumbing I think you should get the sewer lines scoped so you know if there is any existing damage or failures.
I'm not familiar with your market but in mine you won't find much on the MLS. Just about anything over about 7 units is going to be listed by a multifamily broker and only available through their website or an e-mail from the listing broker.
Investor · Pittsburgh, PA · Member since 2015 · 1k+ posts · 1k+ votes
6y
@Account Closed the rule of thumb is completely false. In Pittsburgh If I only bought things built less that 50 years old I would have about 10% of the market to look over. You have to take into consideration the building with a thorough inspection before you make an offer. Not a good rule of thumb for our area here. Perhaps other parts of the county?
Real Estate Agent · Cranberry Twp · Member since 2017 · 384 posts · 198 votes
6y
I think it really depends on market like @Alex Deacon said. In Pittsburgh most of the market is homes in the 50-100 year old range. In other markets, newer construction may be a majority of the market. I think it is important to have a thorough inspection. We just did a total renovation down to the studs on a house and it most likely would fair better then a 10 year old home on an inspection. I think its important to know what you're getting into and be prepared. There is no problem buying a house that needs work in a few years as long as you budget for it and the deal makes sense.