In this blog post, we'll discuss some key factors to look out for when considering older multi-family properties, and why it may be wise to approach them with caution.The Importance of Renovation:Unless an older multi-family property has already undergone a complete gut renovation recently or you plan on undertaking that work yourself, it's generally advisable to be cautious.

For example, when my first build neared completion, I had a great conversation with RTR to discuss my rental options vs. selling and undertaking a 1031 exchange into multiple RTR investment opportunities.

That was a massive undertaking for a newbie.

Here are some key aspects to keep in mind when undertaking a house renovation:1.

Yes, it can be done, however it is a huge undertaking and (as with any investment) the numbers have to be right.

Between what you said, and discussion with a neighbor who is just about finished adding a level to his house, there's no way I'm undertaking this project LOL.

A kitchen rehab is a big undertaking, but if you can get the free part in writing and monitor the workmanship, go for it.

Trying to undertake a six-figure rehab on your first deal sounds like a very bad idea, imho.

It is fairly straightforward and most decent real estate attorneys can draw up the paperwork, but there is some due diligence you should undertake to vet the buyer to make sure they are going to follow through. 

I have found the average person has no clue about ADU's. 2) It can feel like a big undertaking if you don't know the way. 3) and of course the financing and appraisal piece was already mentioned.