Older Homes vs Newer Homes

[Dominique Rogers]

Hello fellow BP members, I had a question about buying older homes specifically in Ogden or Cache Valley. By older homes meaning, homes built before the 40's. It seems like the price on the them tend to be quite cheaper than the newer homes and it looks like they would cash flow better. I was wondering what are the pros and cons to these type of investments?

[JD Martin]

No opinion on your location, but in general:

Older homes:

Better framing/worse foundations/mechanical systems in need of serious update (electrical, plumbing, heating)/area either more run down or more expensive (already gentrified)/more compartmentalized layout (no "open floor plan")/more dangerous material (asbestos, lead paint, knob & tube)/more termite damage/cheaper

Newer homes: more or less the opposite. 

Old homes can be a great investment for rental property. You just have to know what you're getting into before you buy. A well-constructed house can stand for hundreds of years so I wouldn't worry too much about that.