Rehabbing 1900s 2 or 3 Flat in Chicago

[Andrew Fink]

Hello, I’m a new investor in the Chicago area and recently closed on my first househack. 

For my next deal, I’m interested in a 2 or 3 flat with value add opportunities. While researching properties in the Chicago area, I noticed that majority of these properties were either built in the early 1900s or they have already been fully rehabbed in the last 20 years. 

The advice I’ve heard on the recent BiggerPockets podcasts is to find properties built in the 1960s or later because they will be easier rehabs. Can anyone share experiences of  rehabbing these early 1900s 2 or 3 flat walk ups? Do they require a full gut rehab or is it possible to find properties that only need updated kitchen, paint, flooring and not foundation, electrical, and larger projects?

Thanks in advance!

[John Warren]

@Andrew Fink I just finished rehabbing a building from the 1930's. We ended up having to do plumbing supply lines, drains, full electrical re-wire, lots of plaster work, new windows, new roof, new porches, new kitchens, new bathrooms, etc. While it is technically possible to find a cosmetic fixer upper from this era, you have to be able to tell what has been done in the past and what was skipped over. Sometimes this involves being a bit of a detective as the agent or the investor. 

I look for clues on the electric to tell me if the property was ever fully rehabbed. For instance, are the outlets sideways? Are there outlets on all walls where they are supposed to be? Are there three prong outlets? GFCI's? The plumbing is always an issue too, but its normally more obvious if the plumbing was done by checking to see if the two handled shower valves were swapped out and if the rough plumbing looks modern (copper/pvc).