Do you typically avoid older (1960-1970) multifamily units?

Question

Christopher Phillips · Answer

@Andrew Caldieraro

There are homes in my area built in the 1880s

Non-issue

Sean Morrisey · Answer

I am not concerned about age of building...it's really all about location and the opportunity for value add and increase the net operating income.

Max T. · Answer

I prefer the 1880-1920 housing stock

(pretty much everything in Philly)

Cassandra Sifford · Answer

I just walked a triplex built in 1903.  I'm a designer and appreciate character in any home so the age is never an issue.  This property just happened to need a full gut and is already overpriced :(  As far as inspections go, just like any rental or a home you're going to reside in, you'll want to get it inspected so you know what you're up against.  The inspection can also be used to leverage money off so it's best to get it done.  Nobody wants to buy a property un-inspected then learn that the roof, plumbing and electrical need updating.  You could have requested some money off the sale price to get some of that work done or had them fix it for you.

Well wishes ... Cassandra

Jim K. · Answer

Which is sadly never going to happen. Any factor for anyone getting into real estate to really consider.

James Wise · Answer

When you buy an older property it's important to note that you are not typically required to bring them up to current codes. They are almost always grandfathered in as they were compliant with building standards when they were constructed.

Will G. · Answer

Copper/pex and pvc plus modern wiring plus good condition, then age in theory should not be a big concern. But as it gets more and more difficult to get service people (who know what their doing) older(percieved higher maintenance) buildings are going to be taxed in the market with lower values until the demand for trades people is satisfied

Robbie Reutzel · Answer

@Andrew Caldieraro

Age is all relative.  up here in Boston and other places in the northeast, 60s and 70s is newer.  We see stuff all the time in 1880-1920ish.  Just need to be careful with inspections.  You shouldn't have to worry about fieldstone foundations or anything like that like we do.  But to answer your question, age alone wouldn't deter me.  If everything else is much newer it could be a problem but all things being equal shouldn't be an issue in and of itself.

Good luck!

Kevin Dang · Answer

@Andrew Caldieraro Make contingency on inspection. Base on report,  create your construction estimate. Include costs for asbestos and lead abatement. In addition,  add 20-30% allowance for unforeseen conditions. Inspector isn't going to see everything and who knows the condition of the home.

Base on the home, city may make you keep the historical requirements of the home.

Michael Dang · Answer

Not a concern.  Have it inspected during your due diligence.  A seller will generally not allow detailed inspections before an offer.   You can bring an inspector during the property tour but most likely will not get access to all systems and units for a detailed inspection report.  All inspections are on your dime.

Do you typically avoid older (1960-1970) multifamily units?

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