Rental Properties Age - What years built are inflection points?

Question

Hey everyone,

As I think about investment properties, one thing that always worries me is maintenance and repairs. I would THINK investing in newer homes is better to reduce the maintenance and repairs. But are there certain years that we should be careful about? For example, lead based paint is prior to 1978. What other years were there major changes in building codes that would make a significant difference to the building?

I hope that made sense. :)

Thank you.

Theresa Harris · Answer

There is no magic number.  Some new builds are poorly built, some older homes have had major rehab.  Buy a place that is solidly built.  After that look at electrical (is the panel overloaded), and bigger expenses (age of roof, HVAC, siding).

Nathan Gesner · Answer

I haven't found a particular year to be problematic. It has more to do with updates over the years. Has the electric been upgraded to meet today's standards or is in aluminum wiring, too small of a panel, weak breakers, knob-and-tube wiring, no GFCI outlets, etc? Has the insulation been updated? Is there a risk of lead paint on the home that would be expensive to deal with later?

I've seen house from the 1940s that were fully upgraded and they are great! Others from the 70s have been poorly maintained and a small repair can turn into a much larger job if you're forced to bring something up to code.