All Forum Posts by: Richard Lovering

Hey Richard,

The great news about antique houses is they aren't making anymore and the supply is somewhat limited. The bad news is that not a lot of people want antique homes due to the issues you mentioned, like maintenance, etc. I live in NH in a home built in 1760. We bought the house from my folks 2 years ago. Previously we lived in the house next door, built in 1766 (Both homes were built by brothers originally). So I've had some experience buying, selling, updating and maintaining antique homes. 

To some degree, the antique will be compared to others for the normal stats like sq ft, bedrooms, bathrooms, etc etc. I know in our dealings with old homes the appraisers and banks had to open up their search area when developing comps.  They weren't always compared to homes of the same age, but mostly homes 100+ yrs old. 

Perhaps the biggest issue when rehabbing/renovating an old home is what you find when you start taking things apart, or even sometimes what you don't find! Have you had the ability to walk through the home with a contractor yet? Have you rehabbed a home of this age before? 

I think the barn/garage can add a lot of value for the right person. I suppose it all depends on the condition of the out buildings and if they have utilities. Our barn has a work shop/tool room, gym and wine cellar. We've also converted the lower level to vehicle/motorcycle storage in the winter to generate extra income. So there's plenty of uses for those buildings for the right person in the right condition. It probably just needs to be presented that way when trying to establish a value. 

When we sold our first antique it took less than a week. We priced it well and it helps that we're in a desirable town in southern NH (Hollis). Ironically we only had one bidder, but they had been looking for an antique for well over a year in southern NH and they weren't letting our place go!  

If I had to decide whether to invest in a flip that was more up to date vs. antique I would go with a newer house only for the easy of doing business (updating, flipping). If time and money aren't a concern to you, the antique could be a fun option, but be prepared for some bumps along the way and for it to take a while. 

Best of luck!

Matt, yes! One building had old electrical and it wasn't being metered and billed to tenants yet. That was the biggest job. We're using the BRRR method, so we're slowly turning units as they become vacant. Electrical has been our biggest expense by far as it's labor intensive. Most of the older homes may not have likely been setup for apartments, so the electrical can be a bit wonky when you start opening up walls.

My partner and I own older 1900's multifamilies in NH. They do require extra work regarding plumbing and electrical if not updated recently. Just be sure to factor that into your expense when analyzing your deal. We definitely walked away from some we had under contract based on the rehab estimates created during our inspection. 

Hello BP and fellow STR friends!

We closed on a VT condo that's part of a ski mountain resort. I have a seasonal renter lined up for December through mid April. The main concern from the renter is Covid19. Specifically, what if travel is prohibited across state lines and they are unable to utilize the condo? What if the ski MT closes (it did earlier this year, before the end of the season)? 

How are you all handling this in your rental agreement? I appreciate any feedback! 

Cheers,

Rick

NH Governor is not allowing evictions during the state of emergency, which means tenants can live rent free. Also no utilities can be shut off during the state of emergency. While this is concerning for the 2 MF units I have I believe people will make payments if they can, we will work with them if they can't make the whole payment. If they outright refuse to pay then they will be the first to go when things settle down. We will keep those that work with us to pay what they can. 

For anyone that went through the downturn in 08-09 do you remember a moratorium on rents??

Nice terms! Glad it worked out!!

We have a few section 8 tenants in our place in NH. The process to make changes regarding their rent can take some time, but the payments are processed in a timely manner and they have been compliant so far. In general I think they want to make their apartment their "home" as the process to move is difficult and vacancy in our state is about 2%. The list to get on section 8 assistance is long as well. 

Thanks John!

I hear you Erik. I feel like you'll only have an educated guess until you really get in and do it. Also, everyone else runs their business a little different so you really don't know how you will compare. I think being conservative in your numbers is the best strategy. Also, I've gotten great info talking to those that air bnb in the area I'm interested in as well as real estate agents that place seasonal renters, etc. Best of luck!

Rick