Thoughts on older homes

Milwaukee, Wisconsin
Real Estate Deal Analysis & Advice
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Thoughts on older homes

Skay Skay
Investor · Member since 2026 · 4 posts · 2 votes

Hi,

I am a newbie investor looking to start my investor journey in the Milwaukee, WI market. I would appreciate your thoughts on the following deal - 4beds, 2baths, 1,574sqft, 1891 built, 8,712 Square Feet Lot, generating rent of $1600/month to long term tenant. Market rent $1800+.

Asking price - $119,900, $120,100 Zestimate®.

I know this house is old, so I wanted to hear opinions on buying older houses if the foundation and plumbing are solid. How much longer can these houses go on before I have to demolish it fully?

Given the rent potential, would it be a good buy if I plan to hold for say 10 years and sell it. Or should I hold on to it longer and given that the land size is good, demo the house and construct an ADU if zoning allows it?

Thank you,

Skay

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Arman AhmedPro Member
Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 974 votes
2mo
Quote from @Skay Skay:

Hi,

I am a newbie investor looking to start my investor journey in the Milwaukee, WI market. I would appreciate your thoughts on the following deal - 4beds, 2baths, 1,574sqft, 1891 built, 8,712 Square Feet Lot, generating rent of $1600/month to long term tenant. Market rent $1800+.

Asking price - $119,900, $120,100 Zestimate®.

I know this house is old, so I wanted to hear opinions on buying older houses if the foundation and plumbing are solid. How much longer can these houses go on before I have to demolish it fully?

Given the rent potential, would it be a good buy if I plan to hold for say 10 years and sell it. Or should I hold on to it longer and given that the land size is good, demo the house and construct an ADU if zoning allows it?

Thank you,

Skay

I wouldn't let the 1891 build date scare you off by itself. If the foundation, plumbing, electrical, roof, and major systems check out, it could still be a solid long-term hold. At $119.9K with $1,600 in place and $1,800+ market rent, I'd focus on the inspection and real cash flow before worrying about an ADU or teardown. That's one thing I like about the Midwest too: there are still older homes where the right purchase price and a good inspection can make the deal work.

[email protected]614-418-6081
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  • Lindsay DavisBusiness Member
    Real Estate Broker · Birmingham, AL · Member since 2019 · 328 posts · 204 votes
    2mo

    Older homes can work, but I’d let the inspection guide the numbers.

    You don’t necessarily have to demo it just because it’s old. If it’s been upgraded and cared for over time, that matters. I would want to know what the inspection says about the major systems before getting too comfortable with the deal. Roof, HVAC, plumbing, electrical, foundation, sewer, etc. Those capex items should be built into the offer or the plan based on what actually comes back.

    The rent upside may be there, but if several big-ticket items are near end of life, that can change the deal pretty quickly.

    205-205-4118
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  • Gregory AcsPro Member
    Lender · MD · Member since 2025 · 277 posts · 101 votes
    2mo

    The age of the home wouldn't automatically scare me if the major systems and structure have been well maintained. I'd be more focused on getting a thorough inspection and budgeting for future capital expenses like the roof, electrical, plumbing, HVAC, and foundation rather than the year it was built.

    I'd also make sure the deal still works with conservative financing assumptions and realistic repair reserves. If it only cash flows because everything goes perfectly, I'd probably keep looking. If you'd like to walk through the financing or pressure-test the numbers on this deal, I'd be happy to help.

    0Reply
  • Luis Ochoa
    Lender · Miami, FL · Member since 2026 · 37 posts · 14 votes
    2mo

    Welcome! An 1891 house can last as long as it's been maintained, make sure to get a full inspection plus a sewer scope, and look for knob-and-tube wiring, old plumbing, and the age of the roof and HVAC. Get an insurance quote early too, since old wiring can make it expensive. 

    $1,600 rent on $120K is a strong ratio. Just confirm the Milwaukee property taxes and budget for repairs and capex, and pull sold comps instead of relying on the Zestimate.

    I wouldn't demo a house that's producing income. If zoning allows, the bigger play is keeping the house and adding an ADU on that lot.

    If you decide to go with an ADU, happy to talk financing if you move forward.

    1Reply
  • Arman AhmedPro Member
    Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 974 votes
    2mo
    Quote from @Skay Skay:

    Hi,

    I am a newbie investor looking to start my investor journey in the Milwaukee, WI market. I would appreciate your thoughts on the following deal - 4beds, 2baths, 1,574sqft, 1891 built, 8,712 Square Feet Lot, generating rent of $1600/month to long term tenant. Market rent $1800+.

    Asking price - $119,900, $120,100 Zestimate®.

    I know this house is old, so I wanted to hear opinions on buying older houses if the foundation and plumbing are solid. How much longer can these houses go on before I have to demolish it fully?

    Given the rent potential, would it be a good buy if I plan to hold for say 10 years and sell it. Or should I hold on to it longer and given that the land size is good, demo the house and construct an ADU if zoning allows it?

    Thank you,

    Skay

    I wouldn't let the 1891 build date scare you off by itself. If the foundation, plumbing, electrical, roof, and major systems check out, it could still be a solid long-term hold. At $119.9K with $1,600 in place and $1,800+ market rent, I'd focus on the inspection and real cash flow before worrying about an ADU or teardown. That's one thing I like about the Midwest too: there are still older homes where the right purchase price and a good inspection can make the deal work.

    [email protected]614-418-6081
    1Reply
  • Marcus Auerbach
    Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes
    2mo

    Nope, really bad idea!

    We have 4 major home vintages in Milwaukee and pre-1900 is the worst! People were scrappy and built with whatever they could find. The basement walls are likely a mix of field stones, brick, and sugar concrete (lean mix, very little cement). Foundation? Not sure if there is one. Basement ceiling and structural support posts: timbers,  sometimes the with bark still on.

    1920's inventory got much better, think Upper East Side, North Shore, Tosa. But old victorian homes are EXPENSIVE to renovate. Everything was custom built on site. You can't go to home depot and buy a door, you have to have one made by a carpenter to match the opening. That's a 10x cost multiplier. Plaster instead of drywall, radiant heat with boilers and asbestos wrapped pipes.

    1950's - that's what we invest in. Weaker curb appeal, but good bones, well built and a more modern layout (kitchens, more closet space and larger/more bathrooms). Capex is reasonable, drywall interior. 50-70k for a full rehab.

    1990s to present. Too expensive to invest. Also skip the 1980s, that's when they introduced particle board and aluminum windows - the second lowest quality right along 1880s.

    From a neighborhood point of view you'll do a lot better in areas like West Allis than some of the cheap parts of the inner city. Low tenant quality will bleed you out slowly. This unfortunately also puts you at a much higher price point. And that's tough: I was a total price point shopper when I bought my first property 2009. In hindsight, that was just naive on my part, I just did not understand and I had nobody to tell me; you just find out 10 years later if you made a good choice. Feel free to DM me, I can also recommend an agent who is an investor and understand this

    1Reply
    • Skay Skay
      OP
      Investor · Member since 2026 · 4 posts · 2 votes
      2mo

      Thanks Marcus. Great to hear the perspectives from someone local! Appreciate your insights.

      So, do you conduct structural inspections using an engineer when you bought these older homes? Since the older homes have better rental potential compared to purchase price, my plan was to resell these older homes after a few years. And I would most probably hire a PM. I want to own a portfolio with some having cash flow and other with longer term appreciation. So as you said, I might buy houses in the Tosa, West Allis areas.

      I will connect with you once I figure out my finances. Again, thanks for sharing your experiences.

      0Reply
  • Corina Eufinger
    Rental Property Investor · Oconomowoc, WI · Member since 2016 · 996 posts · 432 votes
    1mo

    My Old Lady as I call her was born in 1853 and I love her to death. She's my favorite. Yes I have lead based paint. My windows are big and expensive. My basement resembles a medieval torture chamber...but I love her. She has so much character and character is a good thing with all the fancy higher end places being built. I'd rather have my 4 unit 1853 Old Lady any day over a purpose built 1970s 4-unit. Is it more expensive to upkeep...meh...depends. Depends how much the previous put into it. If you're roofer is in good condition, windows are newers (from the 20th century!) and you have updated electrical, you'll be fine with the normal level of planning for capex. You would probably prioritize the Capex for things that likely might work that others haven't thought of, which is where your structural inspection comes in handy. Don't be scared, they can be a lot of fun to own!

    1Reply
  • Rebecca KnoxBusiness Member
    Specialist · Milwaukee, WI · Member since 2014 · 1k+ posts · 1k+ votes
    1mo

    I buy and hold in the City of Milwaukee where most of the homes are older. Just make sure you buy at the right price. I use Citywide Rentals for my property manager but I think Tong Vang at PMI is very good too and acquainted with these types of rentals.

    Captain Save-A-Home LLC
    WebsiteView Page
    1Reply
  • Adam TafelBusiness Member
    Real Estate Agent · St. Paul, MN · Member since 2017 · 609 posts · 406 votes
    1mo

    Connect with a local agent who is currently doing tons of deals in this particular area. Real estate is local.

    Upside Property Sales 4.9113 Reviews
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  • Stevan Stojakovic
    Lender · FL · Member since 2024 · 492 posts · 123 votes
    1mo

    Hey Skay, welcome!

    Milwaukee is a great market for cash flow, and this deal has solid potential at first glance.

    A few quick points on buying an 1891 build:
    Old-growth timber from that era is tough as nails. If the foundation and roof are solid, it won't need to be demolished, it can easily run another 50+ years.

    Skip the demo idea. Your actual threat with 100+ year-old builds isn't structural; it's dated utilities (knob-and-tube wiring, lead/galvanized pipes, and old clay sewer lines).

    Don't knock it down, but do check Milwaukee's updated zoning on that 8,700 sq ft lot. You may be able to add a detached ADU for a second stream of income while

    keeping the main house.
    Budget a higher capex reserve (12–15%) to handle older-home surprises.


    Get a thorough home inspection and a sewer scope before closing. Best of luck on your first deal!

    1Reply
  • Diana KhanPro Member
    Attorney · 10451 Mill Run Cir #755 Owings Mills, MD 21117 · Member since 2024 · 792 posts · 285 votes
    1mo
    Quote from @Skay Skay:

    Hi,

    I am a newbie investor looking to start my investor journey in the Milwaukee, WI market. I would appreciate your thoughts on the following deal - 4beds, 2baths, 1,574sqft, 1891 built, 8,712 Square Feet Lot, generating rent of $1600/month to long term tenant. Market rent $1800+.

    Asking price - $119,900, $120,100 Zestimate®.

    I know this house is old, so I wanted to hear opinions on buying older houses if the foundation and plumbing are solid. How much longer can these houses go on before I have to demolish it fully?

    Given the rent potential, would it be a good buy if I plan to hold for say 10 years and sell it. Or should I hold on to it longer and given that the land size is good, demo the house and construct an ADU if zoning allows it?

    Thank you,

    Skay

    @Skay Skay, one thing I would look at just as closely as the age of the house is the tenant situation you are buying into. I’ve seen buyers focus so much on the roof, plumbing, and foundation that they forget the lease can affect the deal just as much. I would want to review the current lease, rent payment history, security deposit records, any notices or disputes, and whether the rental is properly registered or licensed if the local rules require it.

    I would also be careful about underwriting the property at $1,800 just because that is the market rent. If the current tenant is paying $1,600, I would first understand when the lease ends, what rent changes are allowed, and whether you are comfortable owning the property at the current rent for a while. If the deal still works at $1,600 and the property checks out physically, that gives you a much safer starting point.

    I’d be glad to stay connected, @Skay Skay. I like seeing newer investors look at the full picture before jumping into a deal, especially with older rentals where both the property condition and the tenant file matter.

    [email protected]240-266-0291
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  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 13k+ posts · 9k+ votes
    1mo

    Connect with @Marcus Auerbach as he know your market!

    [email protected]248-209-6824
    Logical Property Management4.9465 Reviews
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  • Hampton Rogers
    Real Estate Consultant · Chattanooga TN · Member since 2026 · 22 posts · 9 votes
    3w

    Skay, one thing that caught my attention was your thinking about the lot's potential for an ADU. I'd want to establish what the city actually permits on that particular parcel before factoring that possibility into the investment.

    Even if ADUs are generally allowed, lot coverage, setbacks and other requirements can make a difference. Have you looked into whether this specific property would qualify?

    Seems like that answer could help you evaluate the longer-term opportunity, regardless of what you decide about the existing house.

    1Reply
  • Tomer Markovich
    Property Manager · Milwaukee, WI · Member since 2016 · 17 posts · 5 votes
    1w

    Hi Skay, most of the houses we own and manage in Milwaukee were built between 1910 and 1950, so old houses are pretty normal here. The age itself is not the issue, the condition is.

    For a house from 1891 I would check the foundation and basement for water, the wiring (knob and tube can be a problem with insurance), the sewer line (get it scoped), and the age of the roof and furnace. Also anything built before 1978 has lead rules for rentals, so plan for that.

    At 119,900 with 1,600 rent now and 1,800 market rent the numbers can work. Just get a good inspection and a sewer scope before you decide. Those two will tell you more than the year it was built.

    1Reply
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