David Ludwig The beauty of it is that they are 100% responsible for repairs. I had already fixed the places up to rent ready conditions so it was a good deal for them.
Also for me the only thing I hear is the money dropping in the bank.
This is a bit of a noob question and I think I already know the answer, but I'm curious to see what others think.
With how fast properties around the U.S. have appreciated over the past few years, I'm wondering if there's a difference between the amount of appreciation that older properties have seen (by "old", I mean properties built anytime before the 1970s) as compared to newer properties (by "new", I mean properties build anytime after the 1970s).
I realize there are a lot of variables to this question, but still, I'm wondering what others have seen. Whether you invest in older properties, newer properties, or both, has there been any noticeable difference between the amount of appreciation you've seen among each?
Matt Payne Great question, in my opinion I think it’s all relevant to the economy and the area the home is in. Two things we no one can control or predict.
Matt Payne when I sold off a couple of my duplexes in 2019, they had more than tripled in value since I bought them a few years earlier. They were both very old. I think one of them was built in the late 1800s and the other one was built in the 1920s.
Granted, I didn't have any properties that were built after the 1970s, so I don't really have a good comparison from the same market, but just looking at these two by themselves, they didn't seem too hurt by the fact that they were old.
I think it's also a function of how cheap you bought them for in the first place. Regardless of where the market is at, you can always find motivated sellers who will sell for WAY cheaper than market value... and if that's what you're able to do, the things will technically "appreciate" a lot overnight, simply because you got a bunch of free equity at the closing table.
Buying a new property v/s old one? Nice question. I think both things have their own pros and cons like:
Prons of buying a new property:
Cons of buying a new property:
Pros of buying an old property :
Cons of buying an old property:
I think it totally depends upon your circumstances and needs.
Matt Payne Being a house flipper and owner of buy and hold rentals, I could say that your question is just way too broad to answer.
This varies greatly based on the area/ neighborhood/ city/ location. For instance, an older house in an up and coming gentrified downtown area could appreciate very fast.
However, in my buy and holds I try and buy things I can force equity into, which generally are houses built from the late 50's to late 80's. The real gems are usually 70's modern ranch style that need a lot of cosmetic remodeling, which are in clean suburban areas.