Underwriting an old and I mean old home

[Eric Bilderback]

Is there a rule of thumb for an old place built in 1900.  Right now I am using 8% for Repairs and 8% for Cap Ex.  What do you guys think?  The place is in good shape considering the age.  But I am nervous about the age.

Thanks for the feedback,

[Chris Mason]

If you mean the mortgage underwrite, it needs to be a complete and functional home with no apparent health or safety issues.

The bathrooms can be old, nasty, and gross, but they must be complete and functional. 

And so on with the rest of the home.

We do these a lot in the Bay Area where local politics make it nearly impossible to build, so our housing stock is mostly ancient. 

I have done probably 10 times as many loans for 19th century homes as I have for 21st century homes... My median home built date is probably 1965, give or take.

I do love lending on the gorgeous painted lady 1890s Victorian multi-unit conversions. <3