Minneapolis St. Paul older home concerns

[Nathan Christensen]

Hi Bigger Pockets St. Paul,

I’m looking to invest in the St. Paul market next year. Older properties fit my budget best. However, I’m wondering how cautious I’ll need to be with buying homes 100+ years old, or if I should avoid them entirely.
The issues I’m most concerned about addressing are:

-Knob and tube wiring

-Foundation issues

-Plumbing, cast iron pipes, galvanized piped

-Lead based paint

-Asbestos

-Old single pane/drafty windows

-Old HVAC systems

-Roof

-Historical preservation rules

I intend to leave the work of fixing most these issues to electricians, plumbers, roofers, etc. But is there anything I should entirely avoid as a new investor, or any big issues that I’m leaving out?

Thank you for any advice.

[Adam Tafel]

I own a few 1880's homes in St. Paul, and sell a decent amount of older MF in the area. My thoughts:

We don't see many properties with active knob-and-tube these days. Some limestone foundations are 3+ feet wide and wonderfully maintained, while others are crumbing and leaking, avoid the latter. Hard to avoid cast iron drain pipes, not a deal breaker for me. The possibility of LBP is unavoidable and a non-issue IMO. Asbestos insulation on boiler pipes is fairly common, if it appears friable its best to encapsulate, not an expensive process. Replacing windows can be a major capital expense, so know what you're getting into by getting a quote. Most of these homes will have boiler heat, around half will have modern high-efficiency systems. Get a quote for replacement during inspection and build your numbers around the cost. An old roof is an old roof, invest accordingly. I honestly have no personal experience dealing with historical preservation rules, but if you're in a lower price-point it should be a non-issue, do your due diligence when you decide on an area. 

What to entirely avoid? Managing a big construction project from out of state without trusted contacts and experience. There are plenty of old homes that have already been gutted and updated, if you attempt a big job you WILL run into expensive surprises.