1st steps for rehab of 100 year old house
Pueblo, CO · Member since 2026 · 1 post · 0 votes
1st steps for rehab of 100 year old house
4 Replies
- Specialist · I give advice - [email protected] - I focus on states where investing is profitable, reasonably safe & secure · Member since 2026 · 105 posts · 28 votes13h
Quote from @Stephanie Aguero:
I'm currently residing in the home that I inherited. The deed is officially in my name. I'm awaiting a decision on a HELOC loan so that I can begin the rehab to flip. This will be my first experience with real estate investing. If you have wisdom and like to answer semi-stupid questions from a total novice please comment below 🫢🤩😊
Congratulations!
A lot depends on what you goal for the property is.
Since you inherited the home, check with a qualified CPA and see if any taxes are due. Normally when an inheritance is set up properly there won't be much if any taxes, but you need to set the basis now for what the tax will be when you sell later.
The next question to decide is if you will live there or flip. There is a substantial difference in how profit is treated if you live there for a couple of years before you sell and/or if you sell at first possible opportunity.
- Honolulu, HI · Member since 2008 · 3k+ posts · 2k+ votes13h
Plan on replacing the entire electrical system, plumbing system, supply and waste (to the city connections and/or septic tank). Plan on new HVAC system(s). Plan on asbestos and lead abatement. Plan on roof tear off and full replace. Evaluate the foundation condition for stability and for any water intrusion issues which will need to be addressed from the exterior. Investigate structure for signs of weakness, out of level, and prior improper modifications (removal or damage to supporting structures, unpermitted additions). Verify property is not in a historical district.
Even if some of these elements have been "updated", it is highly likely that over that many years there have been illegal, unsafe, or just poor repairs or improvements made. If you are going to spend massive amounts to make the old girl beautiful again, don't make the mistake of ignoring the prior paragraph. You will be tearing out a lot of your "new" work if you don't bring the infrastructure up to current standards, and your maintenance costs will increase exponentially over time.
- 51mAshish AcharyaBusiness MemberCPA, CFP®, PFS · FL · Member since 2017 · 5k+ posts · 3k+ votes
Stephanie, congratulations on the property, and since this is your first project, I'd get the tax and project numbers organized before you start spending the HELOC.
Because you inherited the home, I'd first make sure you have the documentation needed to establish the property's tax basis. I wouldn't assume the previous owner's original purchase price is your basis. I'd keep the inheritance records and any valuation documentation with the project file.
I'd also track the HELOC draws and every rehab expense separately. With a 100 year old house, I'd build a healthy contingency into the budget because the electrical, plumbing, foundation, roof, HVAC, and other systems can uncover surprises once you open things up.
One other thing I'd think through before committing to the flip is how the personal use of the property fits into your eventual sale. You're living there now, but you're also planning a substantial rehab with the intention of selling, so I'd want the tax treatment reviewed before assuming what the eventual profit will look like.
I'd run the project based on your tax basis + total rehab and financing costs + holding costs + selling costs + a conservative resale value. Getting that picture right before you start can save you from making an expensive decision halfway through the project.
Feel free to DM me I’d be happy to send over a few resources that might be helpful.
INVESTOR FRIENDLY CPA®5240 Reviews - Homeowner · Fort Collins, CO · Member since 2026 · 5 posts · 2 votes26m
Congratulations, Stephanie — and hello from up the road in Fort Collins! I'm a homeowner, not an investor, but I've lived through a major systems rehab on an older house, so a few practical lessons from the homeowner side:
Since you're living in the house during the work, plan the rehab in phases around one livable zone. We kept the kitchen and one bath functional while everything else was torn up, and it made the whole thing bearable. Dust barriers and a good shop vac are worth more than you'd think.
Before the HELOC money arrives, get 2–3 bids in writing for the big-ticket systems (roof, electrical, plumbing, foundation). The biggest lesson I learned dealing with contractors: never hand over a large deposit up front. A draw schedule tied to completed milestones protects you far better than paying half down and hoping.
Two things specific to a 100-year-old house: get lead paint and asbestos testing done before any demo starts. If either is present, abatement has to happen first, and it changes your budget and timeline. And take dated photos of everything before, during, and after — when it's time to sell, that documentation is gold.
No stupid questions here — asking them now is exactly what keeps a first project from going sideways. Good luck!
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