Is a 50 year old property too old?

[Account Closed]

I've seen the rule of thumb that you shouldn't buy a property older than 30 years for value-add multi families. In some markets (like Cincinnati) the up-and-coming areas consist of properties that can be much older; between 50-100 years old. Also, for my budget I'm finding that most of my opportunities are between 50-75 years old. Mind you, I'm just searching MLS sites.

If a property is in solid shape and needs mostly cosmetic or other basic improvements but was built in, say, the 1950's, is the age a deal breaker?

Am I seeing mostly older properties because the younger properties are mostly off market?

[Mack Benson]

Age isn't the end all be all but it is something to consider. Minneapolis and St. Paul have a number of solid brownstones built in the late 1800s through the mid 1900s and many of them have gone through extensive rehabs over the years. If you are looking pre 1960s you will likely want to perform a more thorough physical due diligence paying close attention to the electrical and plumbing. While looking at the plumbing I think you should get the sewer lines scoped so you know if there is any existing damage or failures.

I'm not familiar with your market but in mine you won't find much on the MLS. Just about anything over about 7 units is going to be listed by a multifamily broker and only available through their website or an e-mail from the listing broker.