Are Old Buildings Okay?
Hello, I'm looking at some older buildings. They appear to be built early 1900's. Like I think 1930 or so. If you were to buy and you got an building inspection that would turn up any major problems right? So as long as that came back reasonably okay then wouldn't the building still be fine? I know banks don't like it but we don't know what old is here in North America. There's properties in Europe that still sell all day long that are hundreds upon hundreds of years old and they still rent them out.
So what do think would you buy an older building like say built in 1930? Why or why not? Because I'm looking at one now that I'm considering.
I've bought several buildings that were built in the 30's and even before. Obviously, if the plumbing and electrical has not been updated then I would expect to have to do it. You always have the possible asbestos issues with old buildings, too.
I personally like them. One because you can usually buy them cheap, and when fixed up they have a very unique appeal that a new building will never have.
Older buildings do have a certain charm, but at the same time can have considerable maintenance issues if the previous owners did not properly take care of them. I've owned some properties that are close to 100 yrs old. They have certainly proved to require lots of work.
I wouldn't avoid them, but I would be prepared.
My baby is a 4 family built in 1899. Wonderful big brick victorian with a slate roof. The property was gut rehabbed in 92 so no major problems at all.
Ya, I think that is the main thing to look for. What's already been done. Older buidlings can have some major plumbing issues and pretty much you have to replace, or fix something constantly which really cuts into the cash flow. Main things to look for are main drain leaks, check the crawl. Roof, tuck pointing, foundation, and pavement. Check the age of the furnace, hot water heater, stove/ovens, air conditioners, carpenting, tile, etc. Anything older than 10-20 years expect to be contantly replacing/repairing.
are these commercial bldgs you're looking at?
if so, watch for environmental issues (i.e. phase I environmental inspection/phase II/ phase III - eeewwww).
capital expense reports may prove to be helpful for the past X amount of years. see what they've done and how much it has cost.
i'm sure you're looking because you see some value in it - improvements of the structure and subsequent revenue increases, but with those older buildings you really have to pay attention to the finer points that could land you with big expenses that don't necessarily improve your revenues - i.e. asbestos removal.