How old is too old? (or, what should I know about homes built in 1920?)

[Taylor Kendrick]

Hi everyone,

I'm looking at a variety of multi-family homes right now and I found an interesting MFH. All brick, built in 1920. Much older than most of the other listings I'm into but the rough numbers indicate it would be pretty profitable (+$2,000/mo). Conservatively maybe I get more like $750 - $1,000 net profit per month.

I actually quite like the property overall. It reminds me of my grandpa's home which was built in 1924. It's been sturdy as hell but certain things (like plumbing) were a pain to modernize for him. 

What does the squad say on this? How old is too old? What do I need to look out for with a property from this era? Do you draw any hard lines in the "Year Constructed" sand? 

[Ryan Konen]

Older multifamily properties, like the one you’re considering from 1920, can be solid investments, but there are key areas to assess carefully. Older buildings often have charm and character, but they may also come with maintenance challenges. Common concerns in pre-1940s buildings include outdated plumbing, old electrical systems, and structural issues that could be costly to bring up to modern standards. The brick construction is a plus for durability, but check for any signs of foundation issues, especially if the property has settled over the years.

Be sure to budget for updates to key systems—plumbing and electrical upgrades can be pricey but crucial for tenant safety and modern functionality. Lead-based paint and asbestos are other potential issues with older properties, so get an inspection to assess any environmental risks. If the property has a solid inspection and a healthy maintenance budget can be set aside, these older properties can be very profitable. Many investors see no "hard line" on age as long as there’s strong cash flow and maintenance is manageable, but ensuring you’re prepared for any age-related quirks is essential.