Large MF in this market... What would you do?

[Zach Jones]

So I'm looking for opinions from some BP family who have experience in larger MF and older units.  I've been trying to do what I can to scale my MF holdings. As we all know, the past few years have been nuts for RE.  Specifically i the MF sector, there are houses near me that sold for 450k 2 years ago and are literally selling for a Million plus.  

I've found a few properties recently that I'm heavily considering but the main drawback is the age.. alot of 1920s and early '30s. For 1 million dollars at that. That being said, the numbers honestly make sense. ROI should be great. Appreciation should be steady based on the area and rent will definitely continue to trend up. But the potential "MAINTENANCE" horrifies me.

If you've got experience with hundred year old properties, how has ownership been? Is there anything specific to look for or be concerned with? I'm pretty scared to potentially run into major failures within the first years of ownership, what specifically? I'm truly unsure.  Wood structures? Pipes? Termites in said wood structures? 

Also, beyond comps (unfortunately not too many) what methods do you typically use to value large MF? I've attempted GRM and a few others but they tend to be out of the "standard" parameters. If it should be between 6 and 10, I might get a 14 or something similar. Using comps has been my preference when running these but alot of people are just out of their minds. I've got 1 prop for sale right now, 15 unit for 1.4M list when a 20 unit just sold 2 blocks away for 1.4M, and a 10 unit 1 mile away, updated but still a 1930 home, listed at 1.85M. Insane.

This post has been a little bit of a ramble, so to summarize.  My main question is would you spend a million dollars on a 100 year old property if it all made sense? Why would or wouldn't you?  and of course I would get an inspection, a very, very thorough inspection.  As always I appreciate any guidance anyone's got! Thanks