Old Midwest brick multi-family cap ex concerns
Member since 2025 · 31 posts · 21 votes
Old Midwest brick multi-family cap ex concerns
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Honolulu, HI · Member since 2008 · 3k+ posts · 2k+ votes
6moComplete plumbing and electrical replacement, often to the street. Lead pipes. Asbestos containing materials of all types, dependent on construction materials. You need to be careful to not UNcover something previously encapsulated. Roof---how many layers? Plaster and lathe ceilings can be deadly if they have had current or repeated water intrusion from above. I actually had one entire ceiling come down, effectively in one large piece. If someone had been in their bed, they would have critically injured, if not dead. Brickwork, tuck pointing a MF can get pricey if it is in poor condition. You need to closely check the parapets to ensure they are not ready to topple. Exposed iron work, such as porch railings, and exterior stairs and railings, may have serious corrosion, visible or not, creating serious safety issues.
If most or all of those issues have been addressed, and documented, it likely attracts some quality Tenants, but thorough annual inspections are critical.
If most or all of those issues have been addressed, and documented, it likely attracts some quality Tenants, but thorough annual inspections are critical.
12 Replies
- Honolulu, HI · Member since 2008 · 3k+ posts · 2k+ votes6moComplete plumbing and electrical replacement, often to the street. Lead pipes. Asbestos containing materials of all types, dependent on construction materials. You need to be careful to not UNcover something previously encapsulated. Roof---how many layers? Plaster and lathe ceilings can be deadly if they have had current or repeated water intrusion from above. I actually had one entire ceiling come down, effectively in one large piece. If someone had been in their bed, they would have critically injured, if not dead. Brickwork, tuck pointing a MF can get pricey if it is in poor condition. You need to closely check the parapets to ensure they are not ready to topple. Exposed iron work, such as porch railings, and exterior stairs and railings, may have serious corrosion, visible or not, creating serious safety issues.
If most or all of those issues have been addressed, and documented, it likely attracts some quality Tenants, but thorough annual inspections are critical.- Member since 2025 · 31 posts · 21 votes6moSounds like a risky proposition for an out of state investor…
Quote from @Richard F.:
Complete plumbing and electrical replacement, often to the street. Lead pipes. Asbestos containing materials of all types, dependent on construction materials. You need to be careful to not UNcover something previously encapsulated. Roof---how many layers? Plaster and lathe ceilings can be deadly if they have had current or repeated water intrusion from above. I actually had one entire ceiling come down, effectively in one large piece. If someone had been in their bed, they would have critically injured, if not dead. Brickwork, tuck pointing a MF can get pricey if it is in poor condition. You need to closely check the parapets to ensure they are not ready to topple. Exposed iron work, such as porch railings, and exterior stairs and railings, may have serious corrosion, visible or not, creating serious safety issues.
If most or all of those issues have been addressed, and documented, it likely attracts some quality Tenants, but thorough annual inspections are critical.
- 6moZeke ListonBusiness MemberReal Estate Agent · Columbus, OH · Member since 2018 · 1k+ posts · 1k+ votes
Quote from @Mark Soreco:
I'm investigating replacement properties in anticipation of doing a 1031 out of our current property. In looking at some Midwest metros, I see quite a few older (1910s-1940s) multi-story brick construction apartment buildings available. Are these buildings potential cap ex nightmares moving forward? Many that I see have beautifully renovated interiors and claim to be in desirable neighborhoods, but I'd be concerned about the building's age and potential major repairs. What are typical major capital expense items for these buildings? Would these properties be too risky for someone like myself who needs reliable cash flow heading into retirement within 5 years?
Those older apartment buildings are quite common in the Midwest and can definitely be solid opportunities and great buys in markets like Columbus. I personally own several myself. Many of these properties have been successfully renovated and repositioned. They have their own quirks and risks, so doing your due diligence is a must.
Forge Real Estate Advisors535 Reviews - 6moMarc RiceBusiness MemberReal Estate Agent · Columbus Cleveland Dayton, OH · Member since 2018 · 2k+ posts · 1k+ votes
Quote from @Mark Soreco:
I'm investigating replacement properties in anticipation of doing a 1031 out of our current property. In looking at some Midwest metros, I see quite a few older (1910s-1940s) multi-story brick construction apartment buildings available. Are these buildings potential cap ex nightmares moving forward? Many that I see have beautifully renovated interiors and claim to be in desirable neighborhoods, but I'd be concerned about the building's age and potential major repairs. What are typical major capital expense items for these buildings? Would these properties be too risky for someone like myself who needs reliable cash flow heading into retirement within 5 years?
That's a valid concern. But many of them went through major upgrades already and can be a very good investment option. I own 50+ units in Columbus, happy to share my experience
Marc Rice | Investor Friendly Agent at Reafco Tailwind Team574 Reviews - 6moAndrew GlissonBusiness MemberProperty Manager · Memphis · Member since 2026 · 135 posts · 95 votes
Had a large portfolio in Indy. Basements, sewer lines, knob & tube wiring. Have to model it in the capex calc.
- 6moArman AhmedPro MemberReal Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 904 votes
Quote from @Mark Soreco:
I'm investigating replacement properties in anticipation of doing a 1031 out of our current property. In looking at some Midwest metros, I see quite a few older (1910s-1940s) multi-story brick construction apartment buildings available. Are these buildings potential cap ex nightmares moving forward? Many that I see have beautifully renovated interiors and claim to be in desirable neighborhoods, but I'd be concerned about the building's age and potential major repairs. What are typical major capital expense items for these buildings? Would these properties be too risky for someone like myself who needs reliable cash flow heading into retirement within 5 years?
A lot of those early-1900s Midwest brick buildings actually have incredible bones, which is why many are still standing strong today, but the key is knowing where the real cap-ex risks are. In my experience, the big items to pay attention to are roof age, plumbing stacks (many still have old cast iron), electrical capacity, boiler or heating systems, and masonry work like tuckpointing. If those major components have been updated, these properties can actually be very stable long-term cash flow assets. Many out-of-state investors target Midwest markets specifically because you can buy solid brick multifamily at a fraction of coastal pricing while still getting strong rent demand. The main thing is solid inspections and having a good local team to keep an eye on the asset. - 6moJimmy LieuBusiness MemberReal Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
Quote from @Mark Soreco:
I'm investigating replacement properties in anticipation of doing a 1031 out of our current property. In looking at some Midwest metros, I see quite a few older (1910s-1940s) multi-story brick construction apartment buildings available. Are these buildings potential cap ex nightmares moving forward? Many that I see have beautifully renovated interiors and claim to be in desirable neighborhoods, but I'd be concerned about the building's age and potential major repairs. What are typical major capital expense items for these buildings? Would these properties be too risky for someone like myself who needs reliable cash flow heading into retirement within 5 years?
Mark, that’s a great question and honestly something a lot of investors overlook when they see nicely renovated interiors on older buildings. Those 1910s–1940s brick apartments can actually be very solid structurally, but the big thing to watch is the major systems rather than the brick itself. The common capex items on those buildings tend to be roofs, plumbing (a lot still have original cast iron or galvanized lines), electrical panels or outdated wiring, boilers or older HVAC systems, sewer lines, and sometimes foundation or tuckpointing work on the brick over time. Windows, insulation, and drainage can also come up depending on how well the property was maintained historically. The key is really getting thorough inspections and understanding when those big-ticket items were last replaced because a building that already had plumbing, electrical, roof, and mechanical systems updated can actually perform very well for decades. If reliable cash flow heading into retirement is the goal, many investors try to balance older character buildings with strong market fundamentals so rent demand stays consistent. That’s one reason a lot of people are starting to look at Columbus, Ohio. The macroeconomics here are really strong right now with population growth, strong job growth, and major companies expanding here like Intel, Amazon, Google, Facebook, Microsoft, Honda, LG and others, plus a huge tenant base from Ohio State University. Because of that demand, you can still find properties around the $120k–180k range that hit the 1% rule and produce positive cash flow while still having strong appreciation potential as the city continues to grow. A lot of investors like the balance here between affordable entry price, landlord friendly laws, and long term economic growth. Happy to connect and answer any questions you have!
Jimmy Lieu, Red 1 Realty4.9119 Reviews - 6moJosh C.Pro MemberProperty Manager · Indianapolis, IN · Member since 2010 · 1k+ posts · 1k+ votes
Our number one maintenance issue is plumbing issues. Most it one galvanized water lines and cast iron drain lines. It’s not even close. In Indianapolis anyway.
When I buy a place with these things I fully replumb in pex and I keep the vertical cast iron stacks buried in the wall and underground, but replace the horizontal drain lines and what I can see in the basement with pvc. That’s at least 50% of your maintenance calls. Knob and tube wiring can be an issue depending on the electrical loads, but unfortunately it’s super common and super expensive to 100% replace so it’s left alone most of the time.
- 6moSam McCormackBusiness MemberReal Estate Agent · Cincinnati, OH/NKY · Member since 2021 · 1k+ posts · 833 votes
Quote from @Mark Soreco:
I'm investigating replacement properties in anticipation of doing a 1031 out of our current property. In looking at some Midwest metros, I see quite a few older (1910s-1940s) multi-story brick construction apartment buildings available. Are these buildings potential cap ex nightmares moving forward? Many that I see have beautifully renovated interiors and claim to be in desirable neighborhoods, but I'd be concerned about the building's age and potential major repairs. What are typical major capital expense items for these buildings? Would these properties be too risky for someone like myself who needs reliable cash flow heading into retirement within 5 years?
Honestly, just keep decent maintenance on it, and you'll be good. Those houses are built DIFFERENT. I've sold brick buildings like that, built in 1850, and they are doing great. I would desire that type building almost any other type building
Sam McCormack Realtor - Real Estate Agent · Chicago, IL · Member since 2017 · 2k+ posts · 2k+ votes6mo
In my market Chicago all the multi unit buildings are 100 years old. The brick buildings tend to actually be built much better then todays construction and are very desirable often selling for a premium. I very rarely see clients replace all the things mentioned by some other posters. You do an inspection just like you would for any age property and fix things that are needed.
- 6moDrew SygitBusiness MemberProperty Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
Quote from @Mark Soreco:
I'm investigating replacement properties in anticipation of doing a 1031 out of our current property. In looking at some Midwest metros, I see quite a few older (1910s-1940s) multi-story brick construction apartment buildings available. Are these buildings potential cap ex nightmares moving forward? Many that I see have beautifully renovated interiors and claim to be in desirable neighborhoods, but I'd be concerned about the building's age and potential major repairs. What are typical major capital expense items for these buildings? Would these properties be too risky for someone like myself who needs reliable cash flow heading into retirement within 5 years?
There are 200+ year old homes in New England area of US that seem to sell well.
What do you think their conditions are?
Logical Property Management4.9450 Reviews - Investor · Pacific Northwest · Member since 2026 · 511 posts · 287 votes6mo
A lot of the comments here are correctly pointing out specific systems (plumbing, electrical, boilers, etc.), but the bigger question with those Midwest brick buildings isn’t really the age — it’s whether the major system cycles have already been reset.
Many of those 1910–1940 properties actually have extremely durable structures. The brick and framing often outlast modern construction. The risk usually comes from buildings that have had cosmetic renovations but not mechanical resets.
The things I’d want to understand before underwriting one are:
• When the vertical plumbing stacks were last replaced (cast iron eventually becomes a maintenance machine).
• Whether the electrical service and panels were upgraded enough to support modern loads.
• The condition of sewer lines and lateral connections — many of these buildings still have original infrastructure to the street.
• Roof/parapet and tuckpointing cycles, since deferred masonry maintenance can accelerate quickly.
• Heating systems (a lot still rely on older boilers that can be efficient but expensive to replace).
If the building has already gone through a full mechanical modernization in the last 15–20 years, these properties can actually be extremely stable long-term holds.
If it’s mostly renovated interiors sitting on top of original infrastructure, then you’re effectively inheriting the cap-ex cycle.
Since you mentioned retirement in ~5 years, the real underwriting question might be:
Would you rather own a building where the major systems were already replaced, or one where you may be the one funding those replacements during your hold period?
That tends to matter more than the construction era itself.
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