Old Houses

[Account Closed]

What is considered an OLD HOUSE? Is there a certain numbers years old that I should avoid? What are good ways to tell if a old house is a good buy?

My biggest worry as a new investor if the house will last through the years without costing me tons to repair things.

[Stephanie Dupuis]

I've never figured this one out, Kinjal. I've heard on here a few times the warning about old houses, but all I've ever owned are old houses. I "almost" seek them out.

When I say "old house", I'm talking 1950-60's and older-type properties. But, this is really a construction issue for me. The properties in this age range in my area are built better. Many of the homes in my area were built between 1920-1950 and are solid. Huge beams in the basement, simple construction (you have easy access to plumbing, electric, chimney and roof - I love this for inspection and it cuts down repair expenses). The wood used in these older homes is of high quality. You often see old-growth timber and true 2x12's in the basement and elsewhere. I don't know if that's "better", but I sure love seeing it. You won't see OSB anywhere. The care used in the construction of the homes is heartwarming - many use mahogany from the shipyard nearby, and the builders interlocked the baseboards - everything fits tight.

What I look for is deferred maintenance and what type of deferred maintenance. If the bones of the property on an old home are good - I look at it. The home I live in was the most beat up of all the properties I've purchased. I put about $20K into it - new roof, fascia, rebuilt chimney, and paint - these were the big items. Even though this property was neglected for a long time, the bones of this house are solid and I've had no ongoing repair issues. Further, I can easily keep an eye on the guts of the house b/c everything is visible.

But, these may be the a different type of old home than the ones others are referring to.

P.S. I've heard many warn that many old homes have bad electrical. This has not been my experience. I always inspect the electrical. However, my experience has been that at some point, someone has upgraded the electrical. I've come across one property in the hundreds I've looked at where the electrical was not upgraded. And, my first rental had a partial electrical upgrade. I got such a deal on my first rental, it was worth finishing off the electrical (now the electrical is in great shape - I know b/c I had it done). Further, the electric work didn't cost that much b/c the access in the house was clean and easy. Time costs a lot in construction work.

To answer your question:

1. Look at the "bones" of the property

2. Look at the access to and in the property

3. Take the repair cost into account when making offers