All Forum Posts by: Damian Curtis

Sounds like a great property! I'm about to go under contract for a similar project but a little bigger (8 units currently with plans to develop 18 more). Since you already have a good relationship with the planning and zoning department I would talk to them first and see what they would allow you to build based on the zoning. Also it never hurts to start talking to some contractors early on because they should be able to give you a rough price per sf to help you with underwriting and they will also have connections with architects and engineers if you decide to move forward with the project. Good luck with the project! 

I personally prefer properties that are 1970s and newer. You can certainly remodel older properties but since I'm a general contractor and I oversee all the remodels on our investments I like to have as few surprises as possible. 

When you get into properties the 1970s you usually have copper supply lines, ABS sewer lines and copper wiring (aluminum was used until 1973). All these materials are still common today and/or easy to adapt to and re-work. It makes construction a lot easier when you can relocate plumbing and electrical easily. Best of luck to you!

Here are some things to look out for or consider on older properties. The water supply lines are usually galvanized pipes in older houses. They sometimes can rust out over time and its not as easy to adapt new plumbing to it when moving or relocating pipes. Also the sewer lines were usually cast iron pipe above and below ground along with clay pipe being used underground sometimes. The cast iron can also rust out and cause leaks and it can be hard to adapt to once its rusted and brittle. Clay pipe can have roots grow onto them and also crack and crumble underground causing expensive repairs.

Aluminum wiring is another thing to be aware of. It was used in the 1960s through 1973. Aluminum wiring cause a lot of house fires and is not used anymore. If you do find aluminum in a house it not a deal breaker because you can have an electrician pigtail all the outlets and switches with copper for $600-800. Really old houses can have knob and tube wiring. If you have a house that old you are probably better off re-wiring the house to bring it up to current codes.

I don't want to scare you away from older houses because they tend to have a lot of character and can be really beautiful when remodeled right. These are just some tips and things to look for from a contractors perspective. 

You might look into "house hacking". Thats where you would buy a property like a fourplex for example and live in one unit while you rent out the others. Since its your primary residence you qualify for better financing options with very little down.