All Forum Posts by: Chris Nelson

Hello BP community!

We recently moved into a foreclosure duplex that we purchased downtown.  It was built in 2007 and only needed paint, cleaning and some fixtures.  All in all, it's been a light rehab in comparison to most of the historic properties that surround this one.  This was an unusual find and we don't expect to get another deal like this one anytime soon.  We purchased it for $139,000 and the lower unit rents for $1,050 a month.  We are currently living in the top unit and it's safe to assume we could get the same based on the demand and response we had for the lower unit.  My question to you guys is this.  The downtown area is full of historic homes that are currently for sale at a discount due to the stigma and "crime" in the area.  Our goal is to purchase 8 more properties in the next 3 years.  We are looking at Historic homes but it goes against our principal rule of buying 1980 and newer.  I don't know much about historic homes and quite frankly I don't understand how most of them are over a hundred years old and are still standing!  Does anyone have any experience they could share about the type of maintenance they require and any headaches associated with owning one?  Is there any advantages to owing something Historic?  We're these homes built to any sort of code?  Are they really a worthy investment?  A lot of them sit on prime real estate which is a nice bonus!  Thanks Chris

Thank you all for your input and responses.  I really appreciate it.  A lot of very good points were made here and I'm going to dig a little deeper on this one.  

There is an investor building a 110 unit apartment complex in Downtown Wilmington in the historic district. Part of his deal with the city is that he will give away the historic home he owns on the adjacent property so that it can be moved and preserved. He said it would cost roughly $15,000 to move it. He is serious about giving it away. The home was built around the early 1900s. It's a 3br, 1ba with hardwood floors and typical historic charm. The downtown area in Wilmington has a bit of a stigma as a rough area but nothing compared to where we've lived in Baltimore or Dallas. Property values are fairly depressed but the rental market is very strong. It's a happening place and people want to rent here. We also happen to live downtown. I had the thought of offering to accept the home if he would be willing to finance the move and purchase of the lot. We really don't want to eat up all of our available cash on this deal and I'm pretty sure we couldn't finance something like this. Please send your thoughts and suggestions BP community!