Would you consider a property built in the 1800’s?

Question

I’m looking at acquiring my first property thanks to Bigger Pockets, and am analyzing a residential 6 unit that was originally built in the late 1800’s.  The property looks to be in pretty good shape considering its age, but I don’t have much construction/real estate experience and don’t know what I don’t know.  Should I consider a property like this for my first purchase, or look for something newer?  Thoughts and perspective from some experienced investors would be greatly appreciated!

Account Closed · Answer

I'd pay to have an inspection on it and if it is sound, I'd consider it.

Jill F. · Answer

Budget 20k to replace the plumbing if it has the original cast iron stacks and galvanized supply lines. (I'm redoing a 1900 7 unit right now).

Ryan Mahoney · Answer

I'd echo Account Closed is also correct concerning plumbing.  I would also check the state of the electrical wiring.  Has it been updated recently or is it knob and tub or aluminum wiring from decades ago?

I purchased a 100 year old duplex last summer.  Updated roof, plumbing, wiring, and all fixtures and switches.  There is still one bathroom that has some questionable repairs (not done by me) that I will completely redo once vacant.  So far no issues, it is just a half-you know what job that bothers me.  All that said - just be sure you run your numbers with repairs and updates for major systems and budget a little extra for cap-ex and repairs.  If it looks like a good deal after all that it can be a winner.

David Miller · Answer

@Jason Muenster you couldn’t give it to me :)

Rob Massopust · Answer

Top to bottom inspection.

If it is in good condition and the systems are intact and updated it could be interesting.

Might even qualify for historical designation or the Mills Act and get a discount on taxes.

Double check what you can get on financing especially the roof and foundation

Louis W. · Answer

Lol That is like a used car salesman telling you to not check the car history. I will double down and do an even deeper inspection.

Mark H. · Answer

@Jason Muenster

Of course the owner doesn't want you to get an inspection.  Probably means they know of stuff that needs done that you'll come back and expect money off for.  No good can come of it for the owner.

Jason Muenster · Answer

Thanks for the feedback everyone, greatly appreciated!!  I agree in regards to the inspection being a critical part of the process.  The interesting this is that the owner said he wouldn’t waste the money on an inspection because the inspector is paid to find problems with the property, even if they aren’t actually things I’d need to be concerned about.  Seller also stated that I would get most of that information as part of the appraisal.  Thanks again for confirming my belief on the inspection.

Paul Bergagna · Answer

Second the motion on a good home inspection.  Find someone qualified to look at this type of home and don't cheap out; a good inspection can save you a ton up-front and over time.

Also pay close attention to the foundation (assuming it's a rubble/stone/brink foundation) to ensure that its straight, not bowing or seeping water.  Check for termite damage, evidence of rodents, or birds/squirrels nests in the attic.

In addition to checking for antiquated wiring and plumbing, also check for signs of asbestos.  Asbestos that interferes with any renovations will have to professionally removed.

Kyler Cook · Answer

@Jason Muenster

Everything depends on condition. There are houses built in 2018 that I would tell you to pass on. And houses built in the 1800s that make perfect sense.

Would you consider a property built in the 1800’s?

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