Question: Is a older histotical multi-family home a good investement? There are a few older homes in a historical distric of town (GA) they  have 3-5 units. Are these good investments? What should I look for or me leary of?

Answer: Yes! Any Historic house will ALWAYS be a good investment. Obviously these types of houses aren't being made anymore for various reasons. First off, the manner in which these older buildings were built is no longer economically feasible. It costs way too much to build new houses with real wood and brick, as a result you see a lot of fiberboard and cheaper building materials being used in new house construction. When a new home is built, they cut many, many corners compared to how an older home was built. You've probably heard the old adage that "They don't build them like they used to". In this case it's very true! Also most older homes are made with trees from what are known as "old growth forests" instead of "new growth forests". "Old growth" wood is substantially stronger, more rugged, and even harder than "new growth" wood. Wood producers have practical run out of "old growth" (from older, mature forests) and what little is left is a lot more expensive than the more common, and softer "new growth' woods (from newer, non-mature forests). Older homes as a result are built from much better, longer lasting materials. Next, let's talk about architecture. The style of the house is a product of the time during which it was built. Naturally, as times have changed so have the styles of newer buildings. What I'm trying to get at is that older homes are time capsules of bygone eras! In the same way that antique furniture is highly sought after and prized, so too will older, historical homes be sought after and prized (if the haven't been already). Older homes are rarer and harder to come by, and so over time should be worth considerably more than newer homes. Older homes, closer to the center of a town (downtown), usually go through what is known as "GENTRIFICATION" at some point. Please google, er um, I mean yahoo this term. All older neighborhoods experience gentrification at some point, the main question is WHEN! If your lucky enough to own the property before gentrification hits you'll be able to ride the wave of prosperity that it'll create (as well as the higher property tax bill)! Georgia is no exception when it comes to gentrification. By the way, just so you know I practice what I preach. I live in a 90 year old beauty in an older San Antonio neighborhood just north of downtown. My property's value has DOUBLED in the last five due to a renewed interest in the area (gentrification). Why, the property's value has increased 10% in the first quarter of 2006 alone! \n\n      Rentals are almost always serious money producers. If you have 3-5 units and if you play it right, your tenants can pay off most of your mortgage for you! On my property, the car garage in the back was converted into a small apartment by the previous owners. I collect enough rent from the person I leased it out to, to pay for 3/4s of my mortgage payment! Rentals are definitely good!\n   \n      As to what one should look for, I'd say that the basics are important. Make sure that the foundation of the house is solid, since foundation repairs can cost tens of thousands of dollars to repair. Make sure that the electrical wiring has been updated (a definite must), that the plumbing is in good repair, and that the roof is in good shape, that the A/C and heating works well, etc. Basicly, you don't want to buy a house that needs more repairs than it's worth. Also look to see what's around your neighborhood that would help to improve the quality of life of anyone who live there. Are there lots of restaurants, shopping centers, parks, museums, movie theaters, librarys, schools, colleges, etc. In my case there are three universities nearby, two city parks, and plenty of shopping centers and restaurants. I hope this has helped you.
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