Buying a 110 year old home w/ additional STR and LTR living areas

[Grant Med]

Hey everyone! My wife and I are moving to Louisiana and we have been presented with an offer that we are seriously considering. The main home in which we will be living in is 110 years old and has been beautifully maintained. The home includes a private entrance living quarters attached to the home (includes full kitchen, washer and dryer, wet bar, 2 walk in closets, etc.). There is also a separate small cottage in the backyard that is rent ready as well and it's currently being used as an STR. Obviously there is a ton of potential for income streams with this property but here are my questions:
1. Does anyone have experience with older homes and the associated costs to truly maintain them?

2. What questions would you ask the seller to best CYA to truly know if it's a good investment?

3. On average, how likely are sellers willing to disclose utility bills for the past year? (No separate meters for the 3 living areas)

We are already owners of a much newer rental property so this is definitely a much more involved decision.

Thank you!

[John Mocker]

Grant,

Here's a post I just did for an older 4 family that is probably relevant to your questions:

From an insurance standpoint, with older buildings there are questions that come up:

1. Is there Knob & Tube or Aluminum Wiring?

2. When were the systems (roof, electric, Plumbing, heating) last updated and were they fully updated or just partially?

3. Is the electrical fully on circuit breakers or are there fuses?

4. Has the property been inspected for Lead paint?

5. Is it up to fire code (may require hard wired smoke alarms, exit lighting, etc.)?

6. Any Underground tanks (active or inactive)?

7. Asbestos Siding present?

8. Galvanized or PEX plumbing?

Other questions that come up regardless of the building age:

1. Any Pets (if dogs, what breed)?

2. Loss history (see if you can find out if they had any claims in the past 5 years)

3. Is there a flat roof?

4. any secondary heating (space heaters, wood stoves, ....)?

5. are there railing on all interior and exterior stairs?

6. Are the driveway and walkways in good condition?

7. Any overhanging trees?

The presence of any of these conditions does not automatically mean you can not get coverage but depending on what it is, your cost may increase. Knob & Tube wiring for example, will likely, severely limit the standard markets that will insure the property. Comparatively, a flat roof will be a problem with some companies but not others.

I suggest reviewing the insurance with your agent. if that agent only represents one or few markets, also discuss it with an independent agent that represents multiple markets. If you can get recommendations from owners of similar properties on who insures them that may help as well.

The other thing I would check on is if the property is part of a historical district or listed on the National Register of Historic Buildings.