Four Things To Be Successful As An Old House Investor

Over the years I have been involved in renovating every type of residential property that you can think of including large colonials, stilt houses, condos and many more. Some needed just cosmetic repairs but most needed major renovations. However, back in 2005 I had the opportunity of renovating my trophy property. This property was a historical bungalow that was originally built in 1918. I purchased the property from a lady in her 80’s that had owned the property for numerous years. She had allowed the property to deteriorate to the point where the city had levied over $16,000 in fines on the property. The property required over $60,000 in repairs and in fact the main beam in the center of the house was split plus all the siding was termite damaged.

After renovating this property, I looked at renovating in a different light. It reminded me of being a child and taking old shoe boxes and toilet paper rolls making military forts for my toy soldiers. In other words, rehabbing properties in need of major repairs allowed me to take a property that most would look at as trash or beyond repair and make something ALMOST new wanted by the masses.

Along the way, I also discovered more value can be created by buying, fixing and selling properties in need of major repair. Now, I must caution you that undertaking major renovations isn’t for the new investor. You need a great team of contractors and an understanding of construction to avoid losing your ass. But the satisfaction and profits can greatly outweigh the stress of undertaking a major rehab project. Here are four things anyone looking to fix and flip old houses must know.

• Old Houses Have Secrets Behind The Walls ::: Often old houses have been previously renovated two or three times by previous owners. So you must be prepared for spending additional money on fixing items that you cannot see with the necked eye. I have had to rewire more than my share of houses due to jerry-rigged electric. Set aside an additional 10%-15% contingency reserve to cover the surprises.
• Old Houses Have A History ::: You can often talk to the neighbors and find out all types of things about old houses. Just recently, I discovered one of our properties caught fire several years earlier. This prompted us to examine the electrical system much closer. Also check the attic and basement as you may find old pictures or other items that gives you some more historical facts about the property. Finding an old picture once helped me meet some historical standard requirements.
• Old Houses Get Better With Time ::: When rehabbing older houses, your contractors have to take more care and pay attention to detail. Old houses often have settling issues. So a door jamb or window sill may have to be completely reframed. Otherwise the finished product will show the lack of care. Joists may have to be sistered plus much more. Avoid rushing when renovating older homes as you are bond to make mistakes and miss the little things.
• Old Houses Can Be Made Modern ::: Just because you are rehabbing on an older home doesn’t mean you should forget about modern conveniences. Make sure you consider pre-wiring with structured wiring. Consider adding central heating and air. Maybe use soundproof drywall around bathrooms. Think about gas fireplaces, security systems, icemaker lines, etc. Today’s buyer pay more for modern conveniences.

Now it’s a lot more to being successful as an Old House Investor but never forget thefour things above to insure you reach success. I’m off to find my next crib to flip.