Thoughts on older homes
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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#1 New Member Introductions Contributor
- Real Estate Agent
- Columbus Cleveland Dayton, OH
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.