Historic Home Rehab

[Jorge Borjas]

I am looking to purchase a "historic" home and rehab it to flip it. It is in the suburbs of Atlanta. Is there anything in particular that I should be looking for when walking through the property? Any big concerns areas? also, as far as the cost to rehab, how much more percentage-wise should I budget for the rehab?

[Michaela G.]

I've done about a dozen major rehabs of Victorians in Grant Park (Atlanta zoo).

For one thing: It doesn't matter how well you budget, you will go over. Those are really well-built houses and a 2"x8" is actually 2"x8" ;-). But typically, you've had generations of DIY fixes and you don't really know what you're dealing with until you open up walls or take down a drop ceiling etc, which can only be done after you closed. 

It takes a certain type of buyer to want a historic home. If it's in a special area with many other old homes, then buyers will target that area. If it's standing by itself, in between ranches or split-levels, then you'll have to find the buyers. 

The one thing that any historic buyer is looking for is 'character'. That means, they don't want cookie-cutter, the way many investors do their rehabs. They are looking for one-of-a-kind. They want 'drama', even if they don't know in that word. Trim is very important. 

I've never met a historic house that hasn't had some termite damage. Whether active or previous infestation. They've all had it at some point. So, it's very important to look for those little mud tubes and see how high they might have gotten. 

Termites will have to go back into the earth every 24 hours and they eat very slowly. So, if you come across termites in a 2nd floor, where the walls are open - run - because that means that they've eaten their way through the studs in the first floor in order to have gotten up that far. If it's just one stud it might not be such a big deal, but if you several studs eaten up, then I'd walk away. 

If it's just in the crawlspace, then it can usually get fixed easily, unless it's the sill. 

Overall, keep the character and don't make it cookie-cutter. People love the old windows with weights in them. Rather repair the ropes on the weights and put storm windows on the outside (which is historically acceptable) than replacing the windows. 

But as Aaron wrote, if it's in an official historic district, then that prescribes what you're allowed and not allowed to do.