Historical homes

[Account Closed]

What are people's opinions on purchasing historic homes? Living in Upstate NY there are a good amount of historical homes (particularly brick) and I think it would be great to have some in a portfolio. What are some issues that come with these homes? Is the brick a large issue? I figure it would be higher maintenance. Are they more of a headache than it's worth? Thanks!

[Adam Johnson]

In my opinion, historic properties in almost every single deal are HORRIBLE, HORRIBLE investments, with the 2 key words in that sentence being "horrible" and "investments". An investment is supposed to make money, I can almost guarantee that you won't.

One of my early deals was a historic property. I became emotionally attached to the property (another lesson learned, don't love the property, love the INVESTMENT). It turned out beautifully and I was extremely proud of the WORK that I did to the place and the neighbors loved me. I ended up way upside down on the property (had way more money in than I could ever get out), made absolutely nothing for the months that I spent working on it, and in the end, I lost a sick amount of money on it.

Investing is NOT about bragging rights as far as what zip code you own in or how pretty your property is, it is about making money. I bought another property about the same time as my historic nightmare, a little duplex that pales in comparison as far as bragging rights. However, I have a very cheesy smile on my face when I think about how much money that little duplex is making me! On the outside, with a vinyl siding and a newer roof, if almost disappears among the other homes around it. It rents very quickly, and it makes me money. Oh, and for what I have invested in the little duplex versus what I ended up with in the historic hell hole, I could own 8 more duplexes just like it had I not bought the money pit.

I have read some of your other posts and remember that you are just getting started. My words are not meant to discourage you, but to help you. I had a few trusted mentors that would often tell me things that I didn't want to hear, but I listened to anyway. My hope is that you do the same.

Happy investing!