Wood home built in 1946

[Maria M.]

Hello, I found a conforming multifamily near where I live in south Florida, priced as a triplex. So at first I thought it was great. Only, I noticed that it was built in 1946 and it’s a wood home (not just wood frame).
I have not done an inspection, so I don’t know if it has termites or electrical or plumbing problems, but I wanted to ask you if you would think it’s a good deal. I plan to hold it long term, so I wander what kind of repairs it will likely need in the next 2-3 decades. I am not an expert in repairs, so I would need to hire plumbers, contractors, etc. to do all the work. What do you think? Thank you.

[Patricia Steiner]

Here's a laundry list of 'what might' based on 1946 construction:

1.  Knob and Tube wiring (not insurable)

2. Galvanized Pipes/Plumbing (insurable but the suckers corrode from the inside out and burst without warning).

3. "Asbestos was used extensively in home construction from the early 1940s through the 1970s as highly-effective and inexpensive fire-retardant material and thermal and acoustic insulator. It is now known that prolonged exposure to asbestos fibers can lead to lung disease."  It is common is the wood siding of houses this age. It's okay as long as it is sealed and it should never be sanded by anyone who isn't in a gas mask.

4.  Lead Paint. (Warning: Don't lick the walls or eat the paint chips - as tempting as it may sound).

5.  Wood.  In our state, wood houses are termite hotels and need tenting just about annually - every two years for sure.  Wood fungus is also a problem that will require replacement of the siding and other areas.  Permanent wood foundations have been around since the 1940s and their life is dependent upon the materials used at that time as well as the maintenance since.

Scared?  My clients buy these all the time but the first thing to do is to know the condition and the cost to upgrade to current code.  If you're paying cash, you could secure a Builder's Insurance Policy to protect you during the rehab.  If financing, not so easy.  

First, look up the property on the municipality's permit site to see if any permits have been pulled.  I also recommend looking at the house from Google Drive - and adjusting that clock on the screen to see if the property has undergone any changes in the past few years.  Check the property appraiser's site to determine its appraised condition and valuation history.  

Please know that electrical, plumbing, AC, roofing - all the stuff of 4-point inspections - is extremely costly in our state to replace due to the property insurance crisis that we're in.  Know your cost before proceeding...it will not be a 'cheap date.'

Again, the super power here is KNOW - condition, cost to rehab, acquisition cost/method, insurability, valuation.

Hope this helps.