Introduction to Residential Investment Property-Considering a Properties Age

Newer=Better may be a natural thought process but don't just assume a property is better because of it's age.  In fact, many times the old adage "they don't build em like they used to" applies to homes as well.  If you look at a 2x4 in a 1950's home and you look at a 2x4 in a new build, you will see the older 2x4 is much stronger and sturdier.  Unfortunately this type of wood is no longer available and like many things in todays day in age, you get less and pay more.

Older and newer properties each have their pros and cons and they will need to be considered before you purchase.  An older home could be more maintenance intensive (depending on what's been updated) but it could offer a lower purchase price.  If you are handy, or have a crew of your own, purchasing an older home could get you more home for the money.  In Colorado Springs which is an arid desert climate, the older neighborhoods have mature trees and shrubs which appeals to some people.

Newer homes on the other hand usually require less day to day maintenance but will cost more up front.  If you purchase a new build you will need to consider the cost of landscaping, fencing, blinds, etc.  These costs can ad up quickly and are easy to overlook when purchasing.

If you are looking at an older home it's important you have the sewer line checked.  It's common for low spots and collapses to have happened over the years without any one knowing.  This could end up costing upwards of $10,000 to correct.  You are more likely to find an older home on a slab foundation.  This means there is no basement and no crawlspace.  A lot of the plumbing and electrical are run under or even in the concrete!  The cost for completing repairs will skyrocket if you need to jackhammer out concrete to access the problem.  I strongly suggest purchasing a home with at least a crawlspace.  This will usually give you or maintenance personnel access to the major plumbing, heating, and sewer lines.

Age is not much of a factor when purchasing a residential investment property as long as you do your homework first.  Don't rule out old homes assuming they are maintenance nightmares, and don't get caught assuming a new/newer home won't have maintenance problems.

Sincerely,

Daniel Muldoon