Under contract on an Older Home (early 1900's).. issues

[Marc Shin]

I'm under contract on an older-home.  Like early 1900's in Florida. Home inspection completed yesterday.   The 2 main issues are that there's a leak in one of the bathrooms that is causing water to flow under the sub-floor and into the crawlspace.  Also, the home has some cast-iron piping that is mixed in with newer PVC piping. I think all the cast-iron piping would need to be replaced.  Also, I ordered a sewer scope and they could not get the scope all the way through to the main sewer line because of some blockage so i have no idea if the main sewer line looks ok

.  Also the inspection photos show some of the roof joists look like they're partially cracked.    I'm a first time investor, and all these things are adding up to be a huge headache and source of anxiety for me. SHould I just pass on this old property and look into new construction?   Real newbie here need advice! 

[John O'Leary]

Congrats on being under contract! Dealing with older homes, especially those from the early 1900s, can indeed be challenging, especially for a first-time investor. Given the issues you've outlined, it's understandable why you could feel anxious. A leak causing water to flow under the sub-floor and into the crawlspace can lead to significant structural issues if not addressed promptly, and you’d likely need a plumber and possibly a contractor to assess and fix the damage. Replacing cast-iron piping can be costly and labor-intensive, and while the mixed plumbing indicates previous updates, you might want to get an estimate from a plumber to understand the full scope and cost of replacing all cast-iron pipes with PVC. The inability to scope the sewer line is concerning, as you mentioned, there could be blockages or other issues that need attention. A proper sewer inspection is critical to avoid future plumbing disasters. Cracked roof joists are a serious structural concern, and having a structural engineer or a contractor experienced with older homes inspect the roof structure is essential. They can provide a more accurate assessment and potential repair costs.

When dealing with homes from the early 1900s, it's prudent to overestimate your renovation budget to account for unexpected issues. Ensure that a structural engineer inspects critical areas like the roof and foundation, as their expertise can help you understand the true condition of the home and potential repair costs. As a first-time investor, you might find it easier to start with properties built after 1975, as building codes improved significantly around this time, particularly regarding wiring and plumbing, which can reduce the number of surprises and costly repairs. Ultimately, it's crucial to weigh the potential costs and headaches against the potential return on investment. If the issues seem overwhelming and beyond your comfort level, it might be wise to pass on this property and look for a newer one that aligns better with your experience and budget. Good luck with your decision, and feel free to ask more questions! GL

[Marc Shin]

@John O'Leary thanks John! super helpful!

[Jared W Smith]

What you've shown here is not really a cause for concern in my eyes, however I see much worst conditions regularly. They can all be fixed. As others said, overestimate for the repairs. How are the foundation walls, basement/crawlspace framing, HVAC/heating & cooling, roof, windows, elec.? These are the main areas which I would look at closely in an over 100 yr old property. All the best 

[James Mc Ree]

Present the inspection report to Seller and ask them to address the issues. See what they say.

A wonderful thing about real estate law is sellers must disclose known defects in the property. That is a great motivator for Seller to work with you, but expect a negotiation.  Seller is selling a 124 year old home. Don't expect them to put in all new stuff on their dime just because it is aging.

You also should keep in mind you are buying an old home and not be in a rush to update everything. Buy a newer home if that is what you really want.

For example,  cast iron pipes that aren't leaking or about to leak don't need replacement. Consider replacing them if you already plan to demo that area, such as for a new bathroom.

[Dekota Oechsle]

Speaking with my Construction cap on here.  I'd bring forth the report to the seller.  I would get a structural engineer involved on the roof and possible foundation issues. Id get a price to repair said structural issues.  Id get a price from a licensed plumber to fix what is known bad/ faulty, and an additional price to replace all that is a potential problem down the road.  I would add at least a 10% contingency to all repair costs for unseen conditions.  With those costs in mind you can crunch the numbers and see what you would need to negotiate the sale price down to to make it worth your while.  

All deals and problems have a number that works, its just a matter of getting the number accepted. 

[Bob Stevens]

Quote from @Marc Shin:

I'm under contract on an older-home.  Like early 1900's in Florida. Home inspection completed yesterday.   The 2 main issues are that there's a leak in one of the bathrooms that is causing water to flow under the sub-floor and into the crawlspace.  Also, the home has some cast-iron piping that is mixed in with newer PVC piping. I think all the cast-iron piping would need to be replaced.  Also, I ordered a sewer scope and they could not get the scope all the way through to the main sewer line because of some blockage so i have no idea if the main sewer line looks ok

.  Also the inspection photos show some of the roof joists look like they're partially cracked.    I'm a first time investor, and all these things are adding up to be a huge headache and source of anxiety for me. SHould I just pass on this old property and look into new construction?   Real newbie here need advice! 

 RE is ALL about price, your GC should have seen this when they walked it, so get a better price. then fix it