subject: Rehabilitating Historic Homes For Profit [print this page] I have been involved in buying homes for many years. There have been good times and some bad times with plenty of sweat equity invested. In case you have not heard that term, it means we worked on a home ourselves in order to improve its market value, and I can tell you that summers can get pretty hot! Now we usually hire a crew of workers to do the work, but we're all contributing sweat equity in our own way when selling a home.
We have bought some homes that were built in the early 1900s, some even earlier, since my city was established in the late 1800s. Rehabilitating historic homes is a labor of love. The beautiful old woodwork and other charming features such as high ceilings, claw foot iron bathtubs and stained glass windows are the reason that many people choose to buy and live in neighborhoods where historic homes were built in the last century. We have helped several people buy and sell historic homes with these classic features and so we've learned a few things about "rehabbing" or remodeling historic homes.
Generally the term "rehab" is used when classic features and architectural design are important to the homeowner. Government programs have been established to provide some grant money to homeowners in specific neighborhoods, and along with the grant money there are often very exacting guidelines and specifications for how a home must look after the rehab is completed. These guidelines can include the type of roofing, exterior and interior paint colors and bathroom fixture selection.
Although we have not participated in historic home programs, we have purchased and rehabbed many homes on our own, including all areas of most cities. One thing we have learned the hard way is to take time to consider how to preserve the historic features of a home while making it as contemporary and comfortable as possible. Rushing in to complete any remodeling project is never a good idea, so we often take photos and notes in order to plan the work and keep track of its progress. We usually have a project manager who keeps us posted as the remodeling work is done so that we can update our notes.
One of my favorite things about this investing business is watching homes that were formerly in need of attention become beautiful again, adding value for homeowners and bringing families back into established, historic neighborhoods of many cities.
