Greetings all! So as promised, we’re going to cover the topic of old houses, today. This is not legal or financial advice. What you see here is only my personal experience and opinion slow cooked in a nerdy brew for your enjoyment.
We’ll define old homes as traditional construction, meaning not modular or manufactured, built before 1978. Note, I am also assuming the home in question is within the United States, because I’m not familiar with construction in other countries. That having been said, I’d be interested to learn, so if you happen to have any related knowledge of old homes outside the USA, please share.
Old homes bring some unique benefits, risks, and opportunities. We’ll start with the risks. There are three main things to consider: asbestos, lead-based paint, and age-related structural concerns. With regard to the first two especially, make sure you are familiar with applicable laws. A real estate agent or broker, local lawyer, or an experienced contractor should be able to help you with this. These concerns are not deal-breakers, and don’t let them scare you away from old homes. Just know what you’re getting into before you risk your time and treasure.
Ok, now on to the most extensive potential issue, and this one is more of a category. I’m lumping together some things such as knob and tube (K&T) wiring or nonstandard lumber with the general rule of entropy. What I mean by entropy here is that over time things happen. The longer a structure exists, the more time it has for entropy to take effect. The best antidote for this is experience, your own, and that of a trusted contractor and or home inspector. It is also good to assume there will be some surprises, and the older the home, the greater the chances. As for known issues like K&T, these are easier to deal with. Again, pick the brains of trusted tradesmen and you should be fine. Slight side note here, you should also look into your local insurance companies and their policies when it comes to old homes (e.g. will they refuse coverage if there is old wiring in the walls, even if none of it is active? Do they have a problem with galvanized pipe?)
Moving on to the opportunities, these split between the two main types of old homes. The first type you find is the ‘little’ old house. A little old house need not be small in terms of square footage, but it will have been built using bargain materials and design for the time. Think the small frame house or rambling wonky looking monster-house. These properties can usually be gotten cheaply. They can be a good investment for the right price and if the neighborhood allows for an ARV greater than the purchase plus rehab costs. Working on these homes can be easier in that you don’t need to be afraid to gut them and start from studs. I’ve done this and had it come out smashingly well. In these cases, I’m concerned about using what I can rather than preserving. If the current style is for open floor plans, fine, rip out walls and go nuts. If islands are in, ok go for it. All you really want is the location and the shell.
Now where it gets really interesting is the ‘big’ old house. These again can be small or large, but they were built with that extra umph. You’ll know them when you see them. Maybe its ornamental brickwork around the basement windows, elaborate trim inside, a double staircase, unusually solid and straight lines, whatever it is, something will tip you off. These homes I just love! I try to lean into them, making them be the best version of what they are, rather than forcing them to be something they are not. I would not go ripping out walls and ‘modernizing’. No, you want a big modern brick house? Go see a developer. Those things can be stamped out like sprockets. But a magnificent restored older home, those are all one of a kind! I recommend taking a good long look at the project, identifying what makes it special, and accentuating that. Sure, it’ll be a bit more work as you won’t just rip it all out, you may spend a bit more on plaster rather than drywall, maybe you hit a salvage center or find a local craftsman to replace damaged baseboards, but when you are done, you’ll have something truly special. Think of this, an old house with all the things that make it special because you’ve restored them, and lacking any of the things that hold old homes back, because you’ve replaced them! You’ll have beautiful trim, and all working windows, classy grand stairways, and modern wiring, leaded glass, and heated floors, you get the picture.
So, in conclusion, I hope this helps anyone considering making old homes, or old buildings in general, a part of their real estate portfolio. Good luck, good hunting, and see you all next time!