Does the age of the property something I should be worried about?
Member since 2020 · 9 posts · 5 votes
Hello, I'm analyzing a property in Wisconsin. The property was built in 1920. This would be my first out of state investment. Is this risky?
As an owner of many 1830-1960 properties & to comply to our building inspections, here is my 2 cents.
Roof..if it ever needs replacing it will need new sheeting & OSB is ruling @ $50/sheet. Not to mention the 7-10 layers of cedar/tile we have experienced. Then you may need extra rafter supports as trusses were not the norm & long roof beams sag a lot overtime. We have had insurance carriers refuse coverage due to a sagging roof in otherwise perfect condition.
Plumbing: cast iron water & waste pipes will be corroded & could fail especially if your rehabbing & retrofitting new PVC. Old venting can be insufficient &/or blocked. The old cast iron drum traps are a nightmare to replace in small floor cavities if 2inch PVC traps are the code requirement.
Electrical feeds could have been be scabbed in to cover K&T behind the walls & if upgraded it may be ungrounded & many junction boxes could be buried inside ceilings & walls. So new circuits (up here for code compliance) will need to be pulled. New panels with breakers are a must if they are no longer code or the amperage is deficient. Then you need the hard wired Smoke/CO detectors that are fun to wire in an old building.
Windows: if egress is required for code compliance you'll need to address that on all the upper bedrooms. That can be fun if your window sizes are 'set in stone' complete with a limestone sash.
Then there's the mechanicals. Old systems will usually be in need of replacement. The duct work may need upgrading & Hydronic systems are prone to leak & corrode even if they are Cu. Cast iron feeds are also prone to corroding & bursting especially if it's high PSI steam. In fact we had one radiator blow & a piece of shrapnel was lodged into an adjacent wall.
Basements can be a nightmare if mortared field stone. Rim joints can be compromised & age sagging floor joist may need to be supported with the support embedded in the correct footing as per code.
Then depending on age you may have the lack of any insulation in the outer wall cavities. Then again some will have granular dust like insulation full of asbestos poured into the ceiling cavities & that is a nightmare. Furthermore, up here if you break into an outside wall to run electrical the wall must then be fully insulated.
Good luck it's an experience.
@Christian Kim
It’s not risky but you need to make sure you factor in the costs of an older home. In addition to the standard things you would look for, you should also consider the following in a home of this age:
- lead paint
- knob and tube wiring
- energy inefficiency
As an owner of many 1830-1960 properties & to comply to our building inspections, here is my 2 cents.
Roof..if it ever needs replacing it will need new sheeting & OSB is ruling @ $50/sheet. Not to mention the 7-10 layers of cedar/tile we have experienced. Then you may need extra rafter supports as trusses were not the norm & long roof beams sag a lot overtime. We have had insurance carriers refuse coverage due to a sagging roof in otherwise perfect condition.
Plumbing: cast iron water & waste pipes will be corroded & could fail especially if your rehabbing & retrofitting new PVC. Old venting can be insufficient &/or blocked. The old cast iron drum traps are a nightmare to replace in small floor cavities if 2inch PVC traps are the code requirement.
Electrical feeds could have been be scabbed in to cover K&T behind the walls & if upgraded it may be ungrounded & many junction boxes could be buried inside ceilings & walls. So new circuits (up here for code compliance) will need to be pulled. New panels with breakers are a must if they are no longer code or the amperage is deficient. Then you need the hard wired Smoke/CO detectors that are fun to wire in an old building.
Windows: if egress is required for code compliance you'll need to address that on all the upper bedrooms. That can be fun if your window sizes are 'set in stone' complete with a limestone sash.
Then there's the mechanicals. Old systems will usually be in need of replacement. The duct work may need upgrading & Hydronic systems are prone to leak & corrode even if they are Cu. Cast iron feeds are also prone to corroding & bursting especially if it's high PSI steam. In fact we had one radiator blow & a piece of shrapnel was lodged into an adjacent wall.
Basements can be a nightmare if mortared field stone. Rim joints can be compromised & age sagging floor joist may need to be supported with the support embedded in the correct footing as per code.
Then depending on age you may have the lack of any insulation in the outer wall cavities. Then again some will have granular dust like insulation full of asbestos poured into the ceiling cavities & that is a nightmare. Furthermore, up here if you break into an outside wall to run electrical the wall must then be fully insulated.
Good luck it's an experience.
It is likely a Class C or D property, unless it has been recently renovated. This would mean it's a heavier lift, meaning it is riskier. If you have experience doing these kinds of renovations, then great! However, if you don't, and considering the fact that you're out of state, I would suggest you partner with a more experienced investor who can be your boots on the ground. Networking with investors here on BP would be a great way to find a potential partner!