Matthew Whitaker -
Monday, November 5, 2018
Hey everybody. Matthew Whitaker back with another version of “Questions Owners Ask.” Today’s question is, what are the types of houses should I invest in?
So, today I’m really gonna cover…this is a huge question but I’m gonna cover dates.
I’m gonna talk about the advantages and disadvantages of kind of time period built houses.
The first thing I’m gonna talk about is houses that were built from the ’20s to the ’40s. So, a lot of times you find these houses in lower income neighborhoods.
These are houses that were built, you know, that are typically in flat areas, as weird as that is because you didn’t have modern machinery.
They usually, especially in the south, have high ceiling lines and high roof lines because there was no air conditioner at the time. So, the problem you have with these is just antiquated systems.
They might have been retrofitted with things like heating and air conditioning, some modern plumbing, modern electrical, but sometimes they haven’t been.
And even with things like heating and air conditioning, if you have like really high ceilings, then you have the issues of trying to heat and cool a bigger space.
So, typically your repair and maintenance numbers on these homes just because they’re older and there’s more issues with that is gonna be higher. And so you need to have that expectation.
These homes that were typically smaller in terms of square footage. So, that may make up for some of the extra additional costs of repairs and maintenance.
The next houses I want to get into are kind of the ’50s and ’60s that was kind of the next new wave of houses.
One of the cool things about the ’50s and ’60s that I like, and this is an area where I’ve invested my own money in the past and still own a number of homes, is that you get more modern systems and there seems to be an appreciation for really efficient houses.
You get houses that have nicer size closets, better sized bedrooms, the ceilings aren’t as high but you still have modern amenities, you started to get some central heating and air and this era.
These houses I always joke are built like tanks and you find a lot of brick ranchers, a lot of really nice kind of as best deciding, I know that that word’s not a great word, but as long as you don’t mess with it, and you paint over it, it should be fine.
But that’s an era I really love. And, and as cities grew out, particularly in the south, you start to see more of those kind of in the suburbs.
The last one I wanna talk about is more modern houses built after the ’80s, there seemed to be kind of a lull from the ’50s and ’60s up through into the ’80s and ’90s and even up until the day you get into really modern homes.
And one of the things that I believe is that these are probably in nicer areas. So, sometimes they’re harder for you to cash flow these houses that were built during these.
These are really in the suburbs. So, depending on the area, and depending on where you buy, you need to just make sure these homes cash flow. And then of course, new houses.
One of the great things I think about new houses is your repair and maintenance numbers are very low and you’re talking about the first 10 years whereas if you renovate a house, the first two years are kind of the honeymoon.
The first 10 years of owning a new house are the honeymoon. One of the things I found after owning a house for 10 years has been brand new that’s when the heating and air conditioning, some of the systems start to break down.
But it’s great for the first 10 years and as long as you plan on kind of, the fixing those capitalizable expenses at the end, then you should be fine. So, that’s it.
Those are “Questions Owners Ask.” I’m Matthew Whitaker with gkhouses.