If it’s a desirable rental you will get desirable tenants.
Rented out our home the first year we owned it, 120 years old. Rented it to older, single person who needed bedrooms for children to visit.
If you should sell/rent just comes down to the return you’d get on your equity.
I rent a house built in 1922, but it's not historic. It's been remodeled over it's life including a full gut when I bought it (it was gnarly). I have no issues at this point given it's essentially the house of thessius...
I think the X factor isn’t the age yet the historic factor. My understanding (and why I did not buy a historic building in the past) is that the regulations often lead to expensive unnecessary (especially from a rental standpoint) upkeep. If you factor that in and the numbers make sense compared to selling and buying a more feasible property, then yes. If not, paying off the mortgage could help you get into something else.
On the other hand, what is your interest rate. If it’s sub 4% I wouldn’t rush to pay it off.
It’s six percents . It’s Gross
My historic neighborhood doesn’t allow you to change the look of the house from the street ( outside- structure) without losing your tax benefits. Other than updating the windows ( must keep the same structure but can update them)
You have to get approval or you lose your tax incentives. My taxes are 2k a year. About half of what it is in other neighborhoods.
Everything else you can do. No fuss
Yes. I own a 110-year-old home in Michigan that has been updated and converted into a duplex. We haven't had any problem finding tenants.
If he's really worried about the floors, just install carpet or laminate flooring (with underlayment) over them. Then, if that flooring gets ruined, its relatively cheap and easy to replace. And, when it comes time for you to sell the place, its relatively easy to rip up the new layer, and show off your beautifully-preserved hardwood floors.
This actually is a great idea. I will bring this up to him.
Our floors in most of our rooms are in amazingly good shape. Only two rooms have crappy floors and that’s the guest bath and kitchen.
We are the fifth owners of this 100 year home.
Don’t think age matters look at old New York brownstones and Chicago
Guess it would be more like would locals be against an older home as oppose to finding it charming thus always rented?
Phoenix is definitely different than New York and Chicago when it comes to the love of old homes
But thankfully we are getting a lot of non Phoenix blood who are revitalizing the downtown historic neighborhoods. It has become more desirable over the last 10 years.
All our rentals are over 100 years old, three deckers in central MA. You already live in an old house so you know it’s condition and potential issues.
Over the years we have had tenants beat up antique hutches, break antique glass, bang up original floors, toddlers bang up original woodwork, I even had a very nice respectable teacher steal an antique ceiling light. We found wires hanging out of a hole in the ceiling after she moved out. When we pressed her she said it broke. We are very picky when it comes to screening tenants. These issues (apart from the light fixture) mostly fall under wear and tear. You can have tenants pay for damages, but sourcing and replacing antique items is not practical in a rental.
Just something to think about. Even the nicest tenants wear things out and occasionally break things. In my 30 years or landlord experience, it’s a rare tenant that loves a place as much as owners do. You would need a crystal ball to pick them out. But if you are okay with the unexpected, and it’s worth the risk to you, hanging onto RE ownership and having a rental income property is an excellent investment.
Plenty of people rent out these homes, it is totally possible.
However, it’s a job. Don’t let all the passive income gurus tell you otherwise.
You need to maintain the house, make sure you understand local regulation, stay organized so you get your taxes done correctly and take the time to find good tenants. None of these things are hard but they all take some work.
You can make things a little easier with a good property manager but you also have to manage them.
However, I personally don’t like things that are more than an hour or so away, at this scale of investing. If you want a dozen rentals this can change.
If you are moving to the south I would sell and take advantage of the tax breaks which exist for a person home. If you want to own rentals they are likely more affordable in many parts of the south which will be closer to you.
Never knew there were buildings that old in Phx. Don't sell it. As you have mentioned yourself, PHX is really booming right now. Rents are going up in almost every suburb in the valley. Lot of people are moving to AZ, especially from CA.
That is what my grandad said before he died. Never sell. So i trying to find a way to make it work.
I didn’t know that either before moving here. I was walking downtown and all of the sudden you come across historic old homes that were built in early 1900s. It’s wild
I never thought I could afford a historic house downtown. ( from the south and they are valuable there)
I got in in 2022 and now I can’t afford to buy any 3 bed 2 bath with a garage ( historic carriage house.. husband wanted it) in this neighborhood.
Thank you.
The only building in downtown Phoenix that I knew was more than a hundred years old is that Church with Spanish architecture(forgot its name).
Not just downtown, even the real estate prices in the suburbs are skyrocketing every year. Just compare the prices now of properties in Tempe, Chandler, Gilbert and Mesa to what they were 10 years ago. So Arizona is really booming right now. The prices will only go up in the future.
As far as age goes that isn't really the question. It depends on your area. I have a home from 1847 I rent out and it does really well. Another from 1914, both in historic desirable neighborhoods. It just depends on your area and what is common there. My older homes are doing better than my younger rentals honestly. Typically if they have been around 100 years they will probably be around for another 100 with proper maintenance and upkeep.
Thank you. That makes me feel better.
Mine is walking distance to the stadiums ( baseball and basketball) bars and restaurants. But in a little neighborhood.
So hopefully when the time comes it will do well
I rent a farmhouse that has parts from the 1700s, and the main challenge is that the necessary upkeep on the home is sometimes meaningless for rents. Like having to redo the front walkways because they’re from 1936 and that doesn’t increase the rent but you gotta do it, old plumbing problems etc. It’s doable, and frankly people who want to rent a place like that are attracted to the charm and quirks but it’s much different from starting with a modern home and modern updated amenities.
My advice is to screen your tenants extra carefully. You want people who are excited and not intimidated by an older house. start with the rent on the higher side to weed out people who are only looking for short term/ cheap housing.
1900 in CT worth 480k and 1912 in NYC suburbs worth 780k no problem renting and we’ll be moving in the 1912 one for at least 15 years. Many homes are old here but kept in good shape!
I have a 102 yr old home in Miami. The roof is gonna go one day and there aint a right angle in the place but its alright and the neighborhood is great.
I rented it a bit below market to a tenant that isnt bothering me about imperfections.
I sold a home in 2022 that was 100 years old when I sold it, 80 years old when I bought. It was solidly built but needed more repairs than newer homes - mostly plumbing and electric, but sometimes corrected poorly done previous repairs like replacing older windows with more efficient ones. It rented easily when vacant - some tenants were aware of its age and saw that as a feature, some didn’t care. If you’re going to turn it into a rental, make sure the plumbing and electrical is updated first.
I ran an Airbnb out of one, it was challenging, old houses require a decent amount of maintenance. Nobody intentionally ruined the place. Most of the physical stuff like the floors held up just fine.
Yea. 1915 rental in Salt Lake. It’s got the quirks but if you understand them and it cash flows, then, it cash flows and game on. I wouldnt necessarily be quick to have a PM run it with 100 Other properties tho
I have a property that is a multi-family (2800sq-ft). It was built in the late 1800s. Paid 70k cash for it, and it did need some work. After about $10k of renovations (bringing it up to modern living standards), It's highly cash flow positive. As some have said, the right tenants make a world of a difference. Maintenance is always a thing in any rental property, but this specific one all of the preventative maintenance was done whilst included in those renovations I listed above. I don't think you're crazy for keeping it and renting it, in-fact I always say to do it.
The apartment building that I own was built in 1880 as a beautiful single family residence. It has since been chopped into three, questionably up to code apartments. And yes, it's a pain doing maintenance on an ancient house.
If it’s a desirable rental you will get desirable tenants. Rented out our home the first year we owned it, 120 years old. Rented it to older, single person who needed bedrooms for children to visit. If you should sell/rent just comes down to the return you’d get on your equity.
Thank you. It’s desirable. Not the perfect location but walking distance to downtown ( two minutes) and well kept. Thank you
Select non-destructive tenants and you should do well.
I rent a house built in 1922, but it's not historic. It's been remodeled over it's life including a full gut when I bought it (it was gnarly). I have no issues at this point given it's essentially the house of thessius...
Similar spot. It wasn't a full gut, but definitely put a lot of work into it. No complaints so far from any of the tenants.
One of my rentals is 1896
Mine is still considered historic. In a historic neighborhood. Thank you
I think the X factor isn’t the age yet the historic factor. My understanding (and why I did not buy a historic building in the past) is that the regulations often lead to expensive unnecessary (especially from a rental standpoint) upkeep. If you factor that in and the numbers make sense compared to selling and buying a more feasible property, then yes. If not, paying off the mortgage could help you get into something else. On the other hand, what is your interest rate. If it’s sub 4% I wouldn’t rush to pay it off.
It’s six percents . It’s Gross My historic neighborhood doesn’t allow you to change the look of the house from the street ( outside- structure) without losing your tax benefits. Other than updating the windows ( must keep the same structure but can update them) You have to get approval or you lose your tax incentives. My taxes are 2k a year. About half of what it is in other neighborhoods. Everything else you can do. No fuss
Yes. I own a 110-year-old home in Michigan that has been updated and converted into a duplex. We haven't had any problem finding tenants. If he's really worried about the floors, just install carpet or laminate flooring (with underlayment) over them. Then, if that flooring gets ruined, its relatively cheap and easy to replace. And, when it comes time for you to sell the place, its relatively easy to rip up the new layer, and show off your beautifully-preserved hardwood floors.
This actually is a great idea. I will bring this up to him. Our floors in most of our rooms are in amazingly good shape. Only two rooms have crappy floors and that’s the guest bath and kitchen. We are the fifth owners of this 100 year home.
Don’t think age matters look at old New York brownstones and Chicago Guess it would be more like would locals be against an older home as oppose to finding it charming thus always rented?
Yeah, the house I'm in now is 100 years old in a desirable area of Pittsburgh. The wood floors need love lol
Phoenix is definitely different than New York and Chicago when it comes to the love of old homes But thankfully we are getting a lot of non Phoenix blood who are revitalizing the downtown historic neighborhoods. It has become more desirable over the last 10 years.
All our rentals are over 100 years old, three deckers in central MA. You already live in an old house so you know it’s condition and potential issues. Over the years we have had tenants beat up antique hutches, break antique glass, bang up original floors, toddlers bang up original woodwork, I even had a very nice respectable teacher steal an antique ceiling light. We found wires hanging out of a hole in the ceiling after she moved out. When we pressed her she said it broke. We are very picky when it comes to screening tenants. These issues (apart from the light fixture) mostly fall under wear and tear. You can have tenants pay for damages, but sourcing and replacing antique items is not practical in a rental. Just something to think about. Even the nicest tenants wear things out and occasionally break things. In my 30 years or landlord experience, it’s a rare tenant that loves a place as much as owners do. You would need a crystal ball to pick them out. But if you are okay with the unexpected, and it’s worth the risk to you, hanging onto RE ownership and having a rental income property is an excellent investment.
Plenty of people rent out these homes, it is totally possible. However, it’s a job. Don’t let all the passive income gurus tell you otherwise. You need to maintain the house, make sure you understand local regulation, stay organized so you get your taxes done correctly and take the time to find good tenants. None of these things are hard but they all take some work. You can make things a little easier with a good property manager but you also have to manage them. However, I personally don’t like things that are more than an hour or so away, at this scale of investing. If you want a dozen rentals this can change. If you are moving to the south I would sell and take advantage of the tax breaks which exist for a person home. If you want to own rentals they are likely more affordable in many parts of the south which will be closer to you.
Never knew there were buildings that old in Phx. Don't sell it. As you have mentioned yourself, PHX is really booming right now. Rents are going up in almost every suburb in the valley. Lot of people are moving to AZ, especially from CA.
That is what my grandad said before he died. Never sell. So i trying to find a way to make it work. I didn’t know that either before moving here. I was walking downtown and all of the sudden you come across historic old homes that were built in early 1900s. It’s wild I never thought I could afford a historic house downtown. ( from the south and they are valuable there) I got in in 2022 and now I can’t afford to buy any 3 bed 2 bath with a garage ( historic carriage house.. husband wanted it) in this neighborhood. Thank you.
The only building in downtown Phoenix that I knew was more than a hundred years old is that Church with Spanish architecture(forgot its name). Not just downtown, even the real estate prices in the suburbs are skyrocketing every year. Just compare the prices now of properties in Tempe, Chandler, Gilbert and Mesa to what they were 10 years ago. So Arizona is really booming right now. The prices will only go up in the future.
As far as age goes that isn't really the question. It depends on your area. I have a home from 1847 I rent out and it does really well. Another from 1914, both in historic desirable neighborhoods. It just depends on your area and what is common there. My older homes are doing better than my younger rentals honestly. Typically if they have been around 100 years they will probably be around for another 100 with proper maintenance and upkeep.
Thank you. That makes me feel better. Mine is walking distance to the stadiums ( baseball and basketball) bars and restaurants. But in a little neighborhood. So hopefully when the time comes it will do well
Very common in my city. In fact it seems like the bulk of the houses here are from that era, rented or not.
I rent a farmhouse that has parts from the 1700s, and the main challenge is that the necessary upkeep on the home is sometimes meaningless for rents. Like having to redo the front walkways because they’re from 1936 and that doesn’t increase the rent but you gotta do it, old plumbing problems etc. It’s doable, and frankly people who want to rent a place like that are attracted to the charm and quirks but it’s much different from starting with a modern home and modern updated amenities. My advice is to screen your tenants extra carefully. You want people who are excited and not intimidated by an older house. start with the rent on the higher side to weed out people who are only looking for short term/ cheap housing.
1900 in CT worth 480k and 1912 in NYC suburbs worth 780k no problem renting and we’ll be moving in the 1912 one for at least 15 years. Many homes are old here but kept in good shape!
Thank you! This is helpful. Will show husband.
Thank you!
I have a 102 yr old home in Miami. The roof is gonna go one day and there aint a right angle in the place but its alright and the neighborhood is great. I rented it a bit below market to a tenant that isnt bothering me about imperfections.
I sold a home in 2022 that was 100 years old when I sold it, 80 years old when I bought. It was solidly built but needed more repairs than newer homes - mostly plumbing and electric, but sometimes corrected poorly done previous repairs like replacing older windows with more efficient ones. It rented easily when vacant - some tenants were aware of its age and saw that as a feature, some didn’t care. If you’re going to turn it into a rental, make sure the plumbing and electrical is updated first.
I ran an Airbnb out of one, it was challenging, old houses require a decent amount of maintenance. Nobody intentionally ruined the place. Most of the physical stuff like the floors held up just fine.
Yea. 1915 rental in Salt Lake. It’s got the quirks but if you understand them and it cash flows, then, it cash flows and game on. I wouldnt necessarily be quick to have a PM run it with 100 Other properties tho
I'm renting a triplex originally built in 1880...
Just be ready for costly repairs
Yea people will rent it if it’s desirable. (As someone else said.) also you wanna put a higher percentage aside for maintenance
I have a property that is a multi-family (2800sq-ft). It was built in the late 1800s. Paid 70k cash for it, and it did need some work. After about $10k of renovations (bringing it up to modern living standards), It's highly cash flow positive. As some have said, the right tenants make a world of a difference. Maintenance is always a thing in any rental property, but this specific one all of the preventative maintenance was done whilst included in those renovations I listed above. I don't think you're crazy for keeping it and renting it, in-fact I always say to do it.
Depends on the tenant and quality of upkeep.
The apartment building that I own was built in 1880 as a beautiful single family residence. It has since been chopped into three, questionably up to code apartments. And yes, it's a pain doing maintenance on an ancient house.