Purchasing Older Properties

Los Angeles County, California
General Real Estate Investing
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Purchasing Older Properties

Manley WoodsPro Member
Member since 2021 · 74 posts · 27 votes

I’m looking to purchase some rental property in the Saint Louis, MO area but the majority of the properties in my price range are older (built in 1910’s to 1930’s). Has anyone had any positive or negative experiences with properties this old? Should I just continue to save until I get enough for a newer property (something built in the 1940’s or 1950’s lolol)? The areas I’m looking to purchase in are rated as (A) and (B) neighborhoods and I’m interested in buying and holding long term.

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Esta Ryder
Member since 2023 · 101 posts · 67 votes
3y

The negative for me, personally, would be the concern about buying a money pit.  But if you have an inspection, cash for repairs as needed, and a great contractor, I wouldn't worry too much.  Try to find a house that is well cared for (in other words, may be completely outdated but has a newer HVAC system, etc) and most importantly that cash flows.  Don't stretch your budget so far that you can't sleep at night.  I would absolutely buy an older home if it cash flowed, I had an inspection, and I had cash to make any repairs.  But it is ultimately up to what is most comfortable for you.  Good luck!

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  • Esta Ryder
    Member since 2023 · 101 posts · 67 votes
    3y

    The negative for me, personally, would be the concern about buying a money pit.  But if you have an inspection, cash for repairs as needed, and a great contractor, I wouldn't worry too much.  Try to find a house that is well cared for (in other words, may be completely outdated but has a newer HVAC system, etc) and most importantly that cash flows.  Don't stretch your budget so far that you can't sleep at night.  I would absolutely buy an older home if it cash flowed, I had an inspection, and I had cash to make any repairs.  But it is ultimately up to what is most comfortable for you.  Good luck!

    7Reply
  • Eliott Elias
    Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
    3y

    Older properties are a headache to hold if you keep them as rentals. The upkeep will drain you. 

    0Reply
  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    3y

    It depends on the condition of the home and what updates have been done to it.  Same applies to newer homes though different concerns.  For older homes do you have lead or asbestos, what type of pipes for plumbing, what type of wiring?

    0Reply
  • Tom Fidrych
    Member since 2020 · 241 posts · 179 votes
    3y

    I don't think the age matters as much as what updates have occurred since construction. For example, I have a 1910 home but the electrical, plumbing, windows, roof, and heating system have been updated in the past 10-20 years. I get very few service calls. Contrast that with a 1950's home with original galvanized plumbing, Zinsco breakers, and wood sash windows. 

    4Reply
  • Manley WoodsPro Member
    OP
    Member since 2021 · 74 posts · 27 votes
    3y

    Yes, an inspection and money reserves are definitely a must have. Thank you very much, and have a great day!

    0Reply
  • Manley WoodsPro Member
    OP
    Member since 2021 · 74 posts · 27 votes
    3y
    Quote from @Esta Ryder:

    The negative for me, personally, would be the concern about buying a money pit.  But if you have an inspection, cash for repairs as needed, and a great contractor, I wouldn't worry too much.  Try to find a house that is well cared for (in other words, may be completely outdated but has a newer HVAC system, etc) and most importantly that cash flows.  Don't stretch your budget so far that you can't sleep at night.  I would absolutely buy an older home if it cash flowed, I had an inspection, and I had cash to make any repairs.  But it is ultimately up to what is most comfortable for you.  Good luck!


    0Reply
  • Manley WoodsPro Member
    OP
    Member since 2021 · 74 posts · 27 votes
    3y
    Quote from @Esta Ryder:

    The negative for me, personally, would be the concern about buying a money pit.  But if you have an inspection, cash for repairs as needed, and a great contractor, I wouldn't worry too much.  Try to find a house that is well cared for (in other words, may be completely outdated but has a newer HVAC system, etc) and most importantly that cash flows.  Don't stretch your budget so far that you can't sleep at night.  I would absolutely buy an older home if it cash flowed, I had an inspection, and I had cash to make any repairs.  But it is ultimately up to what is most comfortable for you.  Good luck!

    I’m definitely getting an inspection done, and the money reserves will be in place. Thank you.
    0Reply
  • Manley WoodsPro Member
    OP
    Member since 2021 · 74 posts · 27 votes
    3y
    Quote from @Eliott Elias:

    Older properties are a headache to hold if you keep them as rentals. The upkeep will drain you. 

    That’s what I’m most afraid of. Thanks for your input sir.
    0Reply
  • Manley WoodsPro Member
    OP
    Member since 2021 · 74 posts · 27 votes
    3y
    Quote from @Theresa Harris:

    It depends on the condition of the home and what updates have been done to it.  Same applies to newer homes though different concerns.  For older homes do you have lead or asbestos, what type of pipes for plumbing, what type of wiring?

    So I gotta do my due diligence then. Doesn’t matter if it’s a newer or older property. Thanks.
    2Reply
  • Manley WoodsPro Member
    OP
    Member since 2021 · 74 posts · 27 votes
    3y
    Quote from @Tom Fidrych:

    I don't think the age matters as much as what updates have occurred since construction. For example, I have a 1910 home but the electrical, plumbing, windows, roof, and heating system have been updated in the past 10-20 years. I get very few service calls. Contrast that with a 1950's home with original galvanized plumbing, Zinsco breakers, and wood sash windows. 

    I’ll keep that in mind. Making sure that the updates are recent ( 10 to 20 years ). Thank you.
    0Reply
  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    3y
    Quote from @Manley Woods:
    Quote from @Theresa Harris:

    It depends on the condition of the home and what updates have been done to it.  Same applies to newer homes though different concerns.  For older homes do you have lead or asbestos, what type of pipes for plumbing, what type of wiring?

    So I gotta do my due diligence then. Doesn’t matter if it’s a newer or older property. Thanks.

     Exactly. Even if you bought a new build, I'd still do an inspection.

    0Reply
  • Bob S.
    Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
    3y
    Quote from @Manley Woods:

    I’m looking to purchase some rental property in the Saint Louis, MO area but the majority of the properties in my price range are older (built in 1910’s to 1930’s). Has anyone had any positive or negative experiences with properties this old? Should I just continue to save until I get enough for a newer property (something built in the 1940’s or 1950’s lolol)? The areas I’m looking to purchase in are rated as (A) and (B) neighborhoods and I’m interested in buying and holding long term.


     I have done 100a and 100s in the Cleveland markets, ages from 1910- 1930, no issues They actually built better back then. Do not attempt to do this on your own yet. Please connect with those doing deals, walk the properties with them. You will learn then go on your own, 

    Good luck 

    1Reply
  • Greg H.Pro Member
    Moderator
    Broker/Flipper · Austin, TX · Member since 2013 · 4k+ posts · 4k+ votes
    3y

    I live In a brand new home along with having a summer home that is 100+ years old that has been renovated 

    Most of My rentals are 1950 construction that are on pier and beam foundations without central air. Upkeep could not be simpler as plumbing is more accessible with very few major items to repair/replace 

    2Reply
  • Jay ThomasPro Member
    Real Estate Agent · Houston, TX · Member since 2021 · 1k+ posts · 715 votes
    3y

    Keeping older properties as rentals can be a challenging task as they require significant upkeep, which can be exhausting and demanding.

    [email protected]832-889-5607
    0Reply
  • Michael Brattelli
    Real Estate Broker · Medford, NJ · Member since 2018 · 236 posts · 177 votes
    3y

    @Manley Woods I have a historic duplex from the early 1800’s. The bigger items (electric, HVAC, plumbing, windows) have all been updated. Have reserves and you’ll be fine. There’s some great deals out there on older homes you just need to have a thorough inspection and know what you are buying.

    1Reply
  • Patrick DruryBusiness Member
    Real Estate Agent · Columbus, OH & Cleveland OH · Member since 2021 · 1k+ posts · 2k+ votes
    3y

    @Manley Woods
    All the rentals I personally own were built in the 1920s-1940s. Just make sure to do your due diligence and have an inspection done no different than any other property. 

    [email protected]614-412-4565
    Reafco-555 Reviews
    View Page
    2Reply
  • Manley WoodsPro Member
    OP
    Member since 2021 · 74 posts · 27 votes
    3y
    Quote from @Patrick Drury:

    @Manley Woods
    All the rentals I personally own were built in the 1920s-1940s. Just make sure to do your due diligence and have an inspection done no different than any other property. 

    Thanks for your input. I’ll most likely end up getting a property built between the 1910’s to 1930’s because of my budget. Due diligence will be done!
    0Reply
  • Manley WoodsPro Member
    OP
    Member since 2021 · 74 posts · 27 votes
    3y
    Quote from @Michael Brattelli:

    @Manley Woods I have a historic duplex from the early 1800’s. The bigger items (electric, HVAC, plumbing, windows) have all been updated. Have reserves and you’ll be fine. There’s some great deals out there on older homes you just need to have a thorough inspection and know what you are buying.

    Wow! The 1800’s…how has that been going for you? I’ll definitely be looking for properties with recently updated big ticket items. Thank you.
    1Reply
  • Manley WoodsPro Member
    OP
    Member since 2021 · 74 posts · 27 votes
    3y
    Quote from @Jay Thomas:

    Keeping older properties as rentals can be a challenging task as they require significant upkeep, which can be exhausting and demanding.

    That’s what I’m learning from some of these responses. I have a property in Texas that was built in the 1950’s and it seems to have something wrong with every other month. Thanks for the input sir.
    0Reply
  • Manley WoodsPro Member
    OP
    Member since 2021 · 74 posts · 27 votes
    3y
    Quote from @Greg H.:

    I live In a brand new home along with having a summer home that is 100+ years old that has been renovated 

    Most of My rentals are 1950 construction that are on pier and beam foundations without central air. Upkeep could not be simpler as plumbing is more accessible with very few major items to repair/replace 

    Sounds like you are living the dream sir! I want to be like you when I grow up. Thanks for the input.
    0Reply
  • Manley WoodsPro Member
    OP
    Member since 2021 · 74 posts · 27 votes
    3y
    Quote from @Bob S.:
    Quote from @Manley Woods:

    I’m looking to purchase some rental property in the Saint Louis, MO area but the majority of the properties in my price range are older (built in 1910’s to 1930’s). Has anyone had any positive or negative experiences with properties this old? Should I just continue to save until I get enough for a newer property (something built in the 1940’s or 1950’s lolol)? The areas I’m looking to purchase in are rated as (A) and (B) neighborhoods and I’m interested in buying and holding long term.


     I have done 100a and 100s in the Cleveland markets, ages from 1910- 1930, no issues They actually built better back then. Do not attempt to do this on your own yet. Please connect with those doing deals, walk the properties with them. You will learn then go on your own, 

    Good luck 

    Thanks for the advice sir. I’m definitely not doing this alone. Have a great day.
    0Reply
  • Matthew Kwan
    Lender · Seattle, WA · Member since 2022 · 482 posts · 768 votes
    3y
    Quote from @Eliott Elias:

    Older properties are a headache to hold if you keep them as rentals. The upkeep will drain you. 

     Yes agree older properties will definitely have more headache. However, the other to view it by being optimistic, you will have more value to add and leverage to grind the seller. Pros and cons as always @Carlos Valencia @Albert Bui 

    1Reply
  • Manley WoodsPro Member
    OP
    Member since 2021 · 74 posts · 27 votes
    3y
    Quote from @Matthew Kwan:
    Quote from @Eliott Elias:

    Older properties are a headache to hold if you keep them as rentals. The upkeep will drain you. 

     Yes agree older properties will definitely have more headache. However, the other to view it by being optimistic, you will have more value to add and leverage to grind the seller. Pros and cons as always @Carlos Valencia @Albert Bui 

    I’m a pessimist by nature, but working on changing my ways. I’ll for sure be trying to get a good deal from the seller while accounting for the pros and cons. Thanks!
    0Reply
  • Manley WoodsPro Member
    OP
    Member since 2021 · 74 posts · 27 votes
    3y
    Quote from @Theresa Harris:
    Quote from @Manley Woods:
    Quote from @Theresa Harris:

    It depends on the condition of the home and what updates have been done to it.  Same applies to newer homes though different concerns.  For older homes do you have lead or asbestos, what type of pipes for plumbing, what type of wiring?

    So I gotta do my due diligence then. Doesn’t matter if it’s a newer or older property. Thanks.

     Exactly. Even if you bought a new build, I'd still do an inspection.

    Copy that! Thank you ma’am and have a great day.
    0Reply
  • Colleen F.Pro Member
    Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
    3y

    @Manley Woods   On the east coast there is alot of old housing stock so it is more common to deal with here.  Three things Lead, Asbestos, and electrical you need to be sure to pay attention to in older buildings.  Educate yourself on regulations related to these items.  Not just your inspector but you need to be aware of the regs.  Do you have 8 x 8 floor tiles, wood windows, did they use chinese drywall in your area. What does your state require you to do for lead mitigation?  Are there any wiring issue common around you (aluminum wire?).  Yes, there can be more maintenence but what will bite you specifically for old homes is really those 3 items. Depending on how much rehab you plan to do older homes can work out.

    3Reply
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