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.
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..
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you