Older multifamily no wall insulation New England

[Tanya R.]

I have a home inspection coming up Monday for a 3 unit triple decker style home that was built in early 1900's.  It's been mentioned that it may lack wall insulation based on age and listing price.  While that sounds very alarming, should that be a deal breaker with this type of property?  These older buildings were designed to stay warm despite modern day insulation.

Renters will be paying their own utilities anyways and since the property has a history of long term tenants that indicates nobody's too inconvenienced trying to keep their unit heated.  This property also has new windows which will help retain the heat.

I've rented in a very similar triple decker and a converted multifamily built in 1820, both were drafty which had their inconveniences on the stormiest of nights, but I never felt like I had to move out to find an easier to heat place.  I'm currently in a modern day complex and thanks to the oversized windows and slider that have actually allowed snow to get in I keep the heat on so much my skin dries out.

Should I be concerned?  I feel talking to these inspectors has got me nervous.  I understand that finding a cash flowing deal in my area will require improvements be done at some point in time and I don't expect to find a property in near perfect condition.  I just want to make sure I'm going into this with the right state of mind. 

[Roy N.]

@Tanya R.

A Victorian/Edwardian, or earlier, home with little to no insulation is common.  However, many of these older buildings were originally designed to be heated by coal stoves/fireplaces in each room, or {later} fitted with coal-fired steam boilers.   They stayed warm due to generating lots of heat internally and only heating the portions of the house being used {i.e. you would not heat the dining room or salon during the night}.

With older properties we usually lay-out a plan to improve the building envelope first through air sealing (getting rid of drafts and convection within the wall cavities) and, where possible, insulation {not always straight forward ... many old brick buildings have limited insulation options due to the brick requiring heat transfer from inside to drive moisture from the brick}.

Around here it is not uncommon to find an old mansion converted to multiple units - or the occasional purpose-built multi-unit - where the operating costs are 70 - 80% of the revenue and heating comprises 20 - 25% of the operating costs.

The key is to know what you are buying, how to improve it - and what are you limitations - and to ensure you acquire the property at a price which permits you to make the needed improvements.