New to Real Estate · Member since 2019 · 51 posts · 12 votes
I am looking at a couple of single family home investment properties in my area and wanted to know how old is too old as a rental property? The houses are built in 1990-1995 range. Some have improvements made like changed roof etc. These houses net around $300 cash flow per month.
If there are any rule of thumb or things I should consider before investing in these older houses.
Depends on your area, in my area 1990-1995 is not considered an older house. The main things that may wear out are the roof and the HVAC system, so factor those costs in and you should be good. For my area you really start to get more issues in the 1940s where you have things like knob and tube wiring or non-copper plumbing that needs to be replaced. Depending on how strict your state is with lead paint you may want to watch out for that as well, it was banned in 1978 I believe.
@Parag D. 30 years is not old. Both of my properties were built in 1900. However, this means the city doesn't really know when they were built so they put 1900 in as a default. Most likely they are older. Pretty similar to all properties you need to have reserves to fix things even if it's new construction you'll eventually have to replace roof, heating, etc. if you hold the property for long enough