older multi family house....

4 Replies

Hi,  

This is actually a double question.  I often find some really nice MFH's but they are often older homes, some dating back to the early 1900's.  One in particular is really beautiful, inside and out. It is already rented out, and under a property manager.  So the questions are... is buying an older building a good investment, and is it a good idea to start with a property already managed and occupied?  I don't mind older homes, actually I prefer them because they have a certain character and charm that newer ones don't have.  If the infrastructure is good and it has recently been remodelled and bought up to code... I don't see any problems.  

You're right and I don't see any problems with older homes as well. As long as they have been kept up and don't have deferred maintenance then they are good in my book. And they have that extra character that you spoke about. 

Are you buying it because you like the character and charm or to make money? If the numbers work and it's been brought up to code then it sounds like a property to buy! But if you have old MEP items there can be a lot of unforeseen costs.

 Thanks for the replies.   I would buy it actually for both, if possible.  If it is a MFH, I would consider the possibility of living in one of the units as well.  The tenants are long term and wish to stay.  That would mean, a steady cash flow, and not having to worry about turn over. It is within our budget as well.  

My preference is always to find a property with tenants already in place (good tenants of course). 

If it's a new investment in a new area, then having a PM already in place is a bonus (again, a good PM company).

I have a few older homes and haven't had any issues. Just make sure that the foundation is sound. Getting it professionally inspected is a must!

I did have an incident when doing a light renovation. Because it was in a small town, the city got wind of it and got involved and required me to get permits for everything and bring everything up to code. I had to put in new electrical and plumbing, which was costly. It turned into a major renovation project, but it all worked out in the end. 

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