Issues and analysis of a rental property built before 1890?

[Lucas Duce]

Hello everyone,

I am a starting out property investor in search of my first rental property. I am contemplating making offers a possible duplex this week. My only hesitation is that it was built in 1876. The seller is asking for $90K, hoping to purchase for around $80K, the comps for the area are around $120K. Rents are about $700 per month per unit for the area. Estimating initial repairs of around $3,000. After running the numbers, I was getting a cash flow of around $250/month total. I had the insurance quoted at around $1,450 per year, which is double compared to a property built after 1940ish. I estimated that maintenance and repairs would be about 10% of the EGI, and the CapEx at 8% of EGI since it is an older property. I was wondering if there are any other concerns I should factor in with a property that was built in 1876 compared to a property built in 1950ish, besides the doubled insurance rate and the higher CapEx? Assuming that the foundation and structure are in decent condition. Thank you all in advance for your help.

Sincerely, Lucas Duce