House ages to stay away from?

[Mario Cuartas]

Hello everyone,

I am a new real estate investor. I have $30k I would like to invest in multi family investments. I would like to purchase in Springfield, MO, since multi family is a lot more affordable and rents are much higher. How ever many multi family homes available are fairly old, 70 a 120 years old. I am wondering if there are certain building ages that I should stay away from? I have heard that in some time periods, certain building techniques were used that may need to be updated right away or that lead to greater issues with plumbing and electrical, can anyone give me any advice as to what to look for and what to stay away from?

If anyone has any other advice about multi family investing in Missouri, I would gladly welcome it!

Thanked

Mario

[Will Fraser]

Hi @Mario Cuartas, welcome to the BiggerPockets forums!  

In general this reality corresponds with major trends in building along the way.  Some of the most relevant general timeframes are:

• Until the mid 1950's +/- a decade depending on location - things were built on "traditional foundations" i.e. pier and beam.
• Until the 1940s - knob and tube wiring was used for the electrical wiring in homes.
• Until the late 1970s - Lead Based Paints AND Asbestos were used in various materials.  The former in paint and the latter in shingles, siding, texture, and more!
• Until around 1982 - pipes were commonly cast iron or a related metal.  These have a finite shelf life and tend to degrade form the inside, so you know you have a problem when you see water, a high bill, or bacterial growth.

There's not really a one-size-fits-all answer here, but rather you can learn through the process of doing and figure out which ages of homes you are most comfortable with OR you can invest in new construction and newer homes. 

*Be sure you have a competent and excellent agent and/or property manager you're working with in Springfield.  I have family there and recently heard some shocking things about the real estate values and some nuances there and I thought I'd highlight this important.