How old is too old?

[Chendra Grandhi]

I am looking at properties in San Antonio and Indy areas for now. Most of the multi unit or apartment/commercial properties are very old. Some good ones are 1900, 1920, etc. I am rarely seeing any thing newer than 1980. I am worried about buying in to a money pit, how old is too old according to you? What I should be prepared for in terms of maintenance and cap ex? 

I am planning to get inspections done at the minimum. 

[Seth Teel]

@Chendra Grandhi

Other items to consider:  It's it a true multi-family or commercial property.  A lot of the small apartment buildings or small multi-family buildings (8 units & below) here in San Antonio are cobbled together single-families with un-permitted additions and/or detached out-buildings.  Many are not even zoned MF per the City (NOTE: Bexar County Appraisal District building use, class, and zoning designation may differ from the actual zoning, contact the city to be sure). Improper zoning can greatly affect your loan underwriting.  There was also a trend a while back to chop up old mansions into multi-family properties. Fortunately the trend seems to be going the opposite way now as Downtown and central city neighborhoods are full of revitalization. 

Lastly, in addition to making sure plumbing and electrical are updated, check the foundation.  Most of the buildings in SA built prior to 1955+/- were built on pier and beam foundations. If you are not familiar with that type of foundation or not comfortable with it, I would make sure to contact a foundation specialist or engineer in addition to the regular building inspection.