Should We Purchase This 100 Year Old SFH Turned Into a 4-Plex?

[Nita Martin]

The Investment:

My husband and I have put in offer on a 5,000 sq ft, 100 year old SFH that was turned into a 4-plex with an efficiency apartment in back. It is a lovely property in a historic district, and we are literally paying 1/3 of it's value. The ROI when fully leased would be almost 13%.

The Inspection:

We got the inspection report back yesterday, and there are some major concerns!

1. 4 glass fuse panels
2. cloth & aluminum wrapped electrical wiring
3. some galvanized piping
4. microbial growth due to sitting for a while

The Question:

Is this still a good investment?  Should we jump on it or run from it???

All feedback GREATLY appreciated!!

Thanks!

[Greg Dickerson]

All of the issues you mentioned are fixable. You need to get an electrician, plumber, and a mold remediation company to provide quotes for you. Once you have this information you can then go back to the seller and ask for a reduction in the purchase price to offset the cost to fix these items. 

Beyond that I agree with the previous comments it will all be based on what’s your actual net income is and Hal spending money to make the repairs affect your overall return.