So I am new to the whole REI investing world and have come up on some properties that might have some potential. My plan is to start off as a wholesaler and build up some money to get into fix and flips.
But one question that I have is if the year that the house was built have a big affect on whether it is a good deal or not? Of course roofing and year of ac unit matters, but do investors really focus on the age of the house?
I guess I'm mainly concerned if fix and flip investors focus on this and would affect their interest in a property?
Thanks for the help!
In older houses you have to be weary of lead paint, asbestos, knob and tube wiring and plumbing! Just some things that could come up and be costly to keep in mind! However, older houses have lots of character!
Yes and no. Depends on neighborhood and the vintage. Most 1800's and early 1900's homes are in nice historic areas or in bad parts of town. In general these home require much more renovation than meets the eye. When I run numbers on these home I always increase my numbers by 15% and add in an extra contingency allowance.
You want to watch out for obsolete things or annoying things that people don't want. In my area it's steep driveways, tuck under garages, small bedrooms and closets, 1 bath (and small), tight kitchens, steep stairs, 4 level splits, train tracks, etc