Should I buy a 20yrs old duplex?

Question

Should I buy a duplex with all the major expenses(roof,hvac, heater) 20 years old? All the duplex in my area that cash flows are usually built in 2000/2001.

Account Closed · Answer

The Duplex is in Kentucky. The AC is probably going to run half a year I guess. But my concern is having to fix the roof or hvac or heater 1-2 years or maybe a little bit more after purchasing it. The asking price is fair market value that meets the 1% rule when I ran the numbers. I pulled out of a contract on a duplex built in 2000 after inspection shows an immediate need to replace the 20yrs old shingle, HVAC, and  some other minor electrical. But the seller not willing to fix or give a reasonable credit to fix it.

I just need advice on how to proceed with deals like this.

Son D. · Answer

@Muritala Olanrewaju when capex hit is an estimation. Realistically it could break down day after you close or run for years to come. I'd consider residential in the 2000s to be newer. Just add the cost of replacement into your purchase price to see if deal still works.

Aaron K. · Answer

I'd say case by case which is more tedious, roofs vary in length of life from leaf litter, to heat exposure, to freeze thaw cycle to if they were maintained by the previous owner, most of the time you can tell if a roof is in good shape, iffy shape or bad shape from the ground.  Your average roof in anytown USA is going to be in iffy condition, meaning a pro can go up there and say you've got 5 years of life left, you need flashing, you have some slipped tiles or whatever.  I've had comp shingle roofs that are 40 years old and no problem and others that need repairs, in the same area, on properties that were re-roofed at the same time main difference being leaf litter.

Aaron K. · Answer

In my area that would qualify as a newer duplex that would command a premium, but it depends on things like the climate in your area and how long things typically last there, are you having to run the AC year round? Do you get nasty hail storms? strong winds?