Historic Properties

1 Reply

Hi! 

I am in love with historic homes. Anything with quirky character, beautiful moldings, and a fireplace is ideal in my book. But do older homes make for poor investments? I feel like they can easily become a money pit. 

Thanks,

Robert

yes, they can become a money pit.  In my opinion you need to judge them like any other investment on the numbers and I would then add  5 % for what you missed.    You also need to know the applicable laws regarding lead and any updates required that you might not figure on like egress windows.  Consider that before making an offer.

Then consider whether there are people who will rent or buy them with  their quirks considered (weird layouts, smaller rooms).  Most times there are but walk through bedrooms and miniscule kitchens may be deal breakers.

All that said I love older homes and have owned a few  however accidently digging up your septic or opening a wall to find it used to be a shed teaches you to be cautious. I have a multi that is an old granite building and we are rehabbing. I have also done several historic homes in the past (not historic register or limited in that way) and love to see the transformation. Remember though no matter how much you love it,  you also want to remain  solvent and hopefully make money..

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