Investing in multifamily from 1900-1920
Good day everyone.
I own 2 duplexes in central CT. Its pretty hard to find gems like that priced right to BRRR. I did it 2 times already and I'm pretty happy with outcome. I've been looking for another one for a while and there's not much coming out. So I started looking into different types of multifamily. I found out that there's quite few multis from 1900-1920 on the market. Are those any good investments? I walked few of those and I was little scared to touch it looking at the amount of work that needs to be put into those to bring them to "rentable shape". I finish my houses pretty nice with granite counters, new cabinets and brand new bathrooms. Usually one door cost me around 20-25K to redo.
I'd like to hear from investors with these kind of properties in their portfolios.
Are they easy to rent?
Are they real pain to renovate?
How is much could it cost to renovate those?
Is there many problems with permits/updates?
Do you rip out all plumbing and electrical or just patch and fix?
Can you get more bang for a buck with those?
Any other thoughts?
Most Popular Reply
@Matt Dabek I have a few dozen doors in New England and all but one of them are less than 100 years old. I have several that are pre-Civil War. Like anything, the ones that are updated and renovated nicely attract great tenants, especially in that market where nearly all of the rental stock is the same age. The dumpy ones attract dumpy tenants.
When buying anything that age the same principles apply - make sure you do thorough enough inspections to understand what you are buying and have adequate reserves in place to update and repair what is needed over the short term and long term. Same advice for any age property, just a little more to look for with the older stuff.