Older Chicago area homes

[Chris Bernardo]

Hello everyone,

I'm considering properties in Chicago that are pretty old, one was built in the 1890s.  I'm concerned that buying something this old would be asking for trouble over the long-term (30 years), as the areas I'm looking in command a premium.  Specifically of concern is the flooring/structural integrity.  In one building, the floors were pretty uneven which led me to think about how I would remedy that if it became a tenant objection.  My thinking being that if I were to attempt to level them, I might find more issues in the process.  It's probably evident by this point in the paragraph, I have little experience in rehabbing, aside from reading J Scott's book on flipping some years ago.  So, for those who have purchased older homes, am I asking for trouble?  I have been looking for cracks in the foundations or brick, but are there any other tricks to spotting structural issues?  Thank you in advance.

[John Warren]

@Chris Bernardo Chicago has a lot of great housing inventory, and I would focus on the original construction quality more than the age of the home. For instance, you could be buying a masonry building that has been well maintained from the late 1800's and be fine, but you could buy a frame junker and run into all kinds of structural issues. 

The main thing I would look out for in the ones from the 1800's would be the framing where they literally used whatever parts of trees they found around. We have looked at several of these with investors in the Little Village and Pilsen neighborhoods recently and it would take a lot to unwind some of the issues from that. 

Most of our investors end up purchasing brick homes, but even a frame home can be well built. Just make sure your team knows the inventory and what kinds of problems to look out for.