Age of Multi-family buildings in Chicago

[Benjamin J Paoletti]

Many of the multifamily properties listed in Chicago (in the $400k-$600k price range) are built between 1890-1920.

I noticed many of these foundations have settled, cracks in plaster, dips in the flooring, etc. 

If these homes are 100+ years should I be concerned with these issues and the foundation? I know some investors are considering them just tear downs at this point.

Should I increase my budget to $750k+ and try to find newer built homes or is it worth it to invest in these 100+ year old homes?

Bit of a generic question, but wanted to throw this out there for anyone seeing the same thing or who would have some insight. 

Thank you!

[Paul De Luca]

@Benjamin J Paoletti

If there is evidence of foundation issues after doing the inspection, yes I would be concerned. If you eliminate properties of that age from your search your options will likely be pretty limited though. As long as the bones of the property seem to be in good shape, it could be worth moving forward if the numbers make sense.

Going for more expensive properties is going to make it harder to cash flow, but it's your preference and it couldn't hurt to see what's out there.