Historic District Investing

[Josh Birrell]

Hi Everyone,

I'm looking at a five unit apartment building nearby.  All of the numbers look good and the building is in good shape for being more than 100 years old but it's in a historic district which worries me as I've heard some historic areas can be very difficult when it comes to making renovations or improvements.  Is anyone investing in this space and have any wisdom they'd be willing to share?

Thanks 

Josh

[Andrew Johnson]

Josh Birrell Bottom line: it varies. In many cases you have to use “period correct” materials in renovations. So...good luck finding a cheap replacement window. Odds are you’ll be stuck with the layout so welcome to small closets, tiny bathrooms, and “modest” sized kitchens. You might never be able to add a garage. Heck, you might not be able to change the color of the front door.

That said, you can (again, it varies) sometimes get tax credits for those renovations. There’s a application process, funds aren’t infinite, and it’s a pain but there’s a tangible benefit at the end of the day. What I’m trying to say is that it’s not all economical bad news :)