How old is too old for fix and flip project??

Question

The property I am looking at is built in 1944. A 3/1 for sale for 64,000. Houses the with the same dimensions and good cosmetics are going for $140,000 roughly. In addition, if anyone has any tips to train my eye to see these underlying issues when I visit that would be extremely helpful. My market is in Durant, OK.

Thank you guys in advance!

Caleb Brown · Answer

1944 is around that age where there can be old plumbing, wiring, plaster. I would also look at the joists and structure. Verify it's still holding steady. Scope the sewer line. Seems like there is a lot of room  on the deal but when you view you'll be able to gauge.

Alex Morales · Answer

@Andrew McCall Great question! Property age is less about the year built and more about what's been maintained or updated.

My checklist for pre-1950 homes:

**Systems to verify:**

1. **Electrical** - Original knob & tube or cloth-wrapped wiring is expensive to replace ($8-15K+). Look for a 100+ amp panel minimum

2. **Plumbing** - Galvanized pipes rust from inside out. Cast iron drains can be scoped. Budget $10-20K if full replacement needed

3. **Foundation** - Look for settling, cracks, and check if there's a basement vs crawl vs slab

4. **HVAC** - Most pre-1950 homes were radiator heat. Adding central air/forced air can be $8-15K

**The math check:**

With $55K purchase and $140-175K ARV, you've got roughly $85-120K spread. Marcus raises a good point - if it's truly listed at $64K with that ARV, there's likely significant work needed. Budget minimum 30-40% of ARV for rehab ($42-70K) plus closing costs and holding costs.

Run the 70% rule backwards: If ARV is $140K, max all-in should be around $98K. If ARV is $175K, max all-in is ~$122K. You have room, but don't underestimate rehab on pre-war homes.

Get 2-3 contractor bids BEFORE making an offer if possible. The inspection will tell you what you're really working with. Good luck!

Andrew McCall · Answer

This is some great advice. I appreciate your input! Will be using this info from now on.

Marcus Auerbach · Answer

I suspect your numbers are NOT correct. If it is actually listed for $64,000 then it is not worth $140,000. Or it would be gone with 12 offers over list price. It would be more realistic, if it's listed for $100,000 and you negotiated it down to $64,000. I would double check ARV.

What I found is that it's easier to find meat on a 200k-300k bone, the rehab cost is about the same, so the % or rehab to FMV is lower. Agree with Caleb on cost and issues.

Kate Sanchez · Answer

@Andrew McCall Keep hunting! Durant’s 1940s builds often hide plumbing or termite issues, so bring a pro. If the bones are solid, that equity gap is your ticket to scaling. Good luck!

Andrew McCall · Answer

thank you!

Kevin Sobilo · Answer

@Andrew McCall, a few thoughts:

1. Look at your market! Every market is different. In my market a 1944 home would be slightly newer than average in most areas. A LOT of the homes were build 1880-1930. In other markets that would be considered a pretty old home.

The reason I say look at your market is that the age of a home is viewed through what is thought of as "normal" in that market. A 1944 remodeled home in my market will be viewed very favorably while it might be less favorable in a place where most of the homes are much newer.

2. I agree with @Caleb Brown, if any of the systems in the home are original they are surely end of life.

For example an electrical system might be a grounded system using BX style wiring that looks modern but may still have 2 prong outlets. The wiring inside that BX shielding may have deteriorating cloth insulation and the size of the electrical service might be 60 or 100 amps and insufficient for a modern house.

So, know what you are looking for with each system in the house and what upgrades make sense to make.

3. Think carefully about whether you need to replace every old thing in a house. Many times a buyer doesn't analyze things deeply.

For example, a shingled roof with a 25 year warrantied shingle where the roof is 5 years old versus 20 years old. A roof of that type might last 30-35 years. A typical buyer might look at the roof and see the difference in age but to them neither is an issue now, nor likely to be in the near future. So, they don't assign an significant difference in value.

Andrew McCall · Answer

That is helpful. Many of the houses in the area around that mid 1940s age. Do you see a common price point when putting in new plumbing/wiring?

Caleb Brown · Answer

Each area can vary along with the size of the house. Wring can be 8-20K+, Plumbing 5K-20K+ (depending on sewer lines). Have a few GCs walk it and also do an inspection if you can

How old is too old for fix and flip project??

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