Historic Homes and What To Know / Homes In Historic Districts | REIal Talk | EP.56

Hi, guys. Welcome back to another episode on Real Talk. We are on episode 56. I am Caitlin, the marketing and communications coordinator for the Freedom Real Estate Group family of companies. And today we are here with Jen. She is a rehab coordinator for Bulldog, which is a sister company under the family of companies. And today we are going to be talking about buying a historic home, rehabbing it and what to kind of expect in the buying process and as well as the rehabbing process. So one of the things we'll get started with on what makes a home or property historic, things such as design, age, the tradition of it, symbolic, those things all play a factor, but as well as if the property received any kind of special recognition if it's 50 years or older in that time frame. So things such as like events, special events or important people, things like that. I know here in the Dayton area we have quite a few that I'll get into later. That's actually very cool. I've been to a couple of them myself. So things like that you can look for, I believe in the vlog Jen also mentioned, you can also look it up online. Do you remember where you said, I.

Know that there are registries through the state and probably through a city or municipality where. And it could be both. It could be on the Ohio Registry of Historic Places and. Or the city or municipality's own registry for that. So where you would find that, I think your, your best first step is to contact your, you know, local city hall or local government building if you even suspect that you have a. An historic, you know, an historic district home.

Yeah. Not even necessarily if the property itself is historic, but like you said, if it's even in a historic district, because there are some things to be made aware of there alone. So there are some pros and cons to owning a historic home. One of the biggest pros, especially for an investor, are going to be some tax incentives, not only for the state, but also federally. I don't know exactly what that is. You might want to get with your tax professional on that, but that's interesting. Yeah. And then you can also get special loans and grants. I know the loans. You can specifically get lower interest rate loans for a historic home, which I did not know.

And that makes sense because sometimes restoring the home, restoring the property, they don't want you to replace a lot of things with modern materials. And to restore with the original materials, even to find them is sometimes more costly. So those loans and grants probably come in handy.

Oh, absolutely. I'm sure. Another thing is you can Get a plaque on, posted on the exterior that the city will place in that. It also opens you up to a network of people locally and kind of around the United States that are in a historic home or historic district that has information, you can learn from them. There are even investors on there that have tips for, for real estate investing. And whether you Airbnb it or you rent it out a little longer term for residents. So there is that benefit as well. And you can kind of gain some knowledge there. And like I said, you're open to that community. And then the last one that I found is well maintained homes actually are outpacing newer homes when it comes to increasing values. Thought that was interesting. It makes sense.

Absolutely.

I mean, everyone loves a little piece.

Of history, I think, right? Well, and we always sound old when we say it, but they don't make things the way they used to.

They don't. They don't.

And there's a reason why these hundred plus year old homes are still standing. Because they were built like fortresses, some of them. Back when they were built, the materials were just different. They were made to last. And sometimes you get into, you know, we have more environmentally friendly materials nowadays. All our materials are kind of lighter and you know, you know, some of them are better quality, but you can't beat some of that just like solid, good bones, you know, house type of thing. So yeah, I could see that.

There's actually one historic home on here that was going to get to a little later, but it is the Patterson home located in Dayton and it was built by a colonel from the Revolutionary War.

Wow.

And at the time he used war grade or military grade materials to build the home. I thought that was interesting. I was like, that is probably largely to why it is still around. Yeah, I thought that was an interesting fact. But I have more of those later on that we'll get to. So just like anything, there are some cons there. We kind of got into it a little bit in the vlog. There are some limitations that you may run into when you are rehabbing the home, especially when it comes to the exterior. I know right now we are personally experiencing one with box gutters. Do you want to get on that at all?

Sure. So, you know, the, the cons are exterior, and I want to speak interior a little bit just because these are older homes. So your mechanical elements are probably old as well. You're probably looking at, you know, upgrading an electrical panel, gas lines, you know, needing to be tested or maybe updated if you're going to have A gas furnace or gas water heater. And, you know, some of it, too, is, did this property have radiator heat? Is there duct work throughout the house? And this comes with any old house, not just a historic house. But it's definitely stuff to consider when you are buying, you know, as well as the roof. Now, the roof can run into both. You have that as a obviously component of, you know, something that you're going to need to make it sit safe and. And structurally sound. But that comes into the exterior as well. So what A lot of these historic homes and the. The people who kind of make sure that everything stays aesthetically, you know, not even similar, but just in the period or whatever.

Right.

What they're concerned with is making sure that with the windows or the exterior or, you know, the doors, the roofs kind of don't become so modernized that you lose the historic feel of it. And because of that, depending on where you are, you will need to get approval for any kind of exterior adjustment you want to make. So it's a good idea to, like I said, get out in front of this budget a little more time and a little more money, because you might have to submit your plans to an architectural review board. You might have to attend a meeting if they want to, you know, really hear from you and kind of, you know, defend your position. You might have to spend a little more on materials if they want you to restore instead of replacement. So there's that kind of stuff to really consider when you're going into it.

Yeah. And even, like we kind of touched on in the vlog, is even something that seems as small as paint colors. The city or the committee may only have a select few paint colors that you can pick from. So get even getting that approved, and you'll have to get, like, the name of the paint color and everything. I think sometimes some are even as specific as, like, what brand you use.

Well, so windows are the same way. Okay. So, you know, if you want to replace old wood windows, first of all, they really want you to restore them. Now, that's a tough one because a lot of those, you know, any kind of moisture or termites is really gonna compromise the integrity of a wood window. And there are ways to restore them, but part of that, too, is the energy efficiency. You just don't have that anymore with a wood window. So I know that certain towns or municipalities actually have a list of approved windows that they will allow you to replace your wood windows with. Okay. So it just can't be any old, cheap vinyl window because Again, they're trying to preserve that aesthetic nature. So you really need to find out about that stuff before you start your project.

Yeah. And also it goes to say that, you know, not every area is the same or even every property, you know, there's different time periods and different architectural structures that were built. So it all just depends on that property and the area that you're in and what they have going on. And it can all be different. Some may be a little more lenient, some may be a little more strict. It all just really depends where you are located and where the property is.

Yep, very true. And I think for the most part, you know, even though it can get a little bit frustrating to deal with some of the delays and having to go to meetings and the boards and stuff, they are, first of all, I think, appreciative of people who are willing to buy these properties. Some of them have been vacant for a long time. You know, some of them are run down and they're going to get fixed up. They don't want this to be a huge financial burden to the buyer. Yes. So they are willing to work with you. Again, though, I think they really appreciate it. If you get out in front of it, if you go and do something and then try to come back around, that's when you're kind of going to get your wrist slapped. Because they want to be a part of that process.

And I believe you can even get fined if you do something without getting it approved.

Yeah, I think so.

So again, like we said in the vlog, definitely be transparent. When you are working on a property that is either historic itself or in a historic historic district. Just do cross, dot all your I's, cross all your T's, and be safe and make sure that you are taking the necessary steps for that approval process.

Because you don't want that fine and you don't want, even worse them to deny you like a certificate of occupancy and say, you can't even move in here, you know, because these things weren't approved.

Absolutely. Trying to see if I had any other cons, really, the all that I could find on it was just being cautious with the renovations.

Sure.

And keeping about a 20% aside for the unforeseen, because you never know what.

Is going to happen.

So keeping 20% aside for extra just in case, you never know what could happen. So that is what I found on that. Do you have anything else to add before I move on?

No, I think that's. That's, you know, very good. Like you were talking about before with the box gutters. You know, we would like to be able to just put in aluminum gutters and in one property that we have kind of hide them so it still looks aesthetically pleasing. But we agreed to get an estimate at least on what it would cost to repair the box gutters. And, you know, if the cost is. Is somewhat close, then we'll probably go with it.

Okay. Yeah, definitely. And that goes to say too, even if it's very similar with having a historic property and be. Or. And. Or being in a historic district, because even if your property isn't historic itself, if it's in a district, you may still be responsible for maintaining that property to fit the aesthetic of the rest of the area. Mostly it's going to be kind of like exterior work for people who are passing through. Again, just trying to keep that esthetic. So that is also something to be aware of. Even if you are just buying within a district alone.

Absolutely. Yep. They don't want you to paint certain things. We usually paint our foundation and our porch steps. They don't want you to do that. You know, they don't want bright colors or colors that are out of character. Yeah, you have to. You just kind of have to let them tell you what. What you're looking at. Yeah.

And I know too, if you do buy a property in a historic district and you want to get your property specifically marked as a historic location, there is a process that you can go through to get that approved and then you can then again access those pros, such as, like the tax. Tax incentives for federal and state. So there is that opportunity for you as well, if you are wanting to go down that route. I want to talk about next, about what to kind of expect when buying. There are. It is. It can be a little different than buying a more modern home, if you will. Some things are going to be. It may be harder to schedule an appraisal for it. Typically it will usually appraise higher than normal because of the historic value. But some appraisers, because it is a historic home, some things may be dated. It may be more difficult for them. So it may be harder to find an appraiser who will do that.

Okay, I was gonna say, do appraisers know when they're dealing with a historic property?

Yeah. So you may run into that issue where you may not have maybe an experienced appraiser or someone who maybe they just don't like doing historic homes for whatever reason. So you may be able. Expecting that. And that could again, Go on with having a longer timeline, kind of expected.

Got it.

Again, some lenders also might shy away. However, there are specific lenders for historic homes, and then insurance companies. Again, kind of a similar situation with lenders. Some insurance might shy away because they could consider it a higher risk. But there are specific companies out there for historic homes and districts that are out there. And again, they usually. They are for the insurance companies, they typically will offer a lower interest rate for those ones that are specific to historic areas.

That's good because. Yeah, you don't want to have to. You don't want this to be a financial burden, right?

Absolutely. Absolutely. And that's one of the things I saw, is that they very much. They don't want that. So they have these specific companies put in place because there are themselves also historic lovers or architectural fans. So they understand that value and they want to maintain as much of American history as we can. Right.

And that's a cool thing. Absolutely. You know, you see, in these districts, every house is unique. You know, every. Every house has a different character. And that's. That's neat. And like you said, it was part of a certain era of that city's history or that town's history, or somebody famous built it, you know, or somebody famous lived there.

Yeah, that's cool stuff. It is. And that's. I know I talked earlier about some of the fun facts that kind of. That's a good transition point. I just wrote down a few specifically for the Dayton area. You know, here we have the Wright brothers house, which I don't know if you have ever been there. It's absolutely beautiful. I've never gone inside. I know you can go in and tour it to do, but it has these large pillars in the front, and the front and back are actually replicated. So the front and back look exactly the same.

Oh, wow.

But it is. It's beautiful. If you are ever in the Dayton area, I absolutely encourage you to go. It's amazing experience. And then the Wright brothers, just in case you didn't know, they were the first pilots. So it's very cool to have located here. I loved it. I love going. It's amazing. And the city has done a great job with preserving it.

That's good.

The next one that I have kind of talked about a little bit is the Patterson homestead from the Revolutionary War. And he was in the family for three generations. And the general, like I said, he built the home with war or military grade materials. And it is still standing, so it's never gonna fall. Yeah. And one of the descendants was John H. Patterson, and he actually founded the National Cash Register.

Yep. That was a big. I think that still is based in Dayton. Yeah, it was, you know, founded and a big part of the, you know, Dayton economy for a long time.

Absolutely. And then the last one I have is the Lewis Kemp house, which was one of the very first few houses here, located in the Dayton metro area. And it was built in 1806 with brick and limestone. And I believe it was two or three years after they built it, and they were living there. They donated the home to a school, and then a year later, they donated part of the land. I forget how many acres they bought. It was quite a few. They donated part of the land to the first cemetery located here in Dayton, Ohio. Oh, wow.

Okay.

Yeah. So there's a. And there's a lot more that you can research, and those are all ones.

That you would visit. No one is actually living in those currently.

Correct.

Okay.

Correct.

Yep.

Those are all currently museums that you can look at. And like I said, there's a ton more. Middletown in Cincinnati especially. I should have looked some of those up.

I think Oakwood has a fair number of properties that are actually residential.

Yes, I know. I believe the. The Kettering. The Kettering family home is one that would make sense.

Yep.

And then I know this is actually fun fact. My parents. Gosh, this was years ago, maybe 2010, maybe. They purchased the. I don't remember what mayor it was, but one of the previous mayor's homes, and it was abandoned for several years, went in and rehabbed it. One of the family members actually still lived locally in the area, and they brought us some. Some signs that the mayor had and that he had hanging on the home at the time. And one of them was actually a clock. And the clock still worked. It was very cool. So my parents attached it back to the house where it originally was.

Nice.

And some of the signs they told us, they, like, had the. They showed us pictures and everything. It was very cool. But I want to say it was. It was definitely earlier 1900s. I can't remember exactly when, but it was very cool to kind of see those and experience it and everything. So there is a lot of history. That one is kind of on the Kettering and Oakwood border. That's why I said that. And actually, the Wright brothers home, I think, is technically considered Oakwood, if you will. Okay, so definitely a lot. And then I do have one more fun fact. Haunted houses are especially of high value, even with their bad reputation.

If you how do you know if they're haunted? What makes the house a haunted house?

That's a good question. I don't know. I thought that was very interesting. But there is a specific market for it. I know what was the one. It's very popular house that just came available. There's a movie about it. I can't remember what it is. Something Ville Family.

Like Amityville?

Yes, yes, like Amityville Horror. Yeah. So I believe that's it. It just came available and it was like, I can't remember the price, but.

It was ridiculously high.

And I was like, who would want to buy that with all the stories? And me personally, I'm like, right, no, thank you. But when I saw that, I was like, that's interesting because someone will. I know there was another one that recently also came on the market when I say last fall. So the. I mean, it's very interesting because I was. When I saw those. The prices on them, I was like, what in the world? But now it makes sense.

Yeah, they've got a little. A little niche.

It's crazy. So I just want to end this as. You know, buying a home or a property investment is always a huge purchase, irregardless of the age of the home or whether it's historic or not. But definitely, you know, before you buy the property, learn about it, look it up, see if it is in a historic district or if the property itself is historic. And then based on that, you know, kind of have those cautions in mind that, you know, time may be a little longer and maybe have a little bit of a larger budget or see if that fit within your budget for that cushion.

Absolutely right.

That is all that I have. Do you have anything else you want to add?

No, just like I said, get out in front of it, do your research. Don't. Don't make your defense be. I didn't know because.

Yes.

It's not gonna fly. So.

Yeah, yeah, yeah.

Know what you're getting into?

Absolutely. And like you said in the vlog, you know, a lot of. If you're in historic district, a lot of the committee members live in the historic district themselves and they will have eyes on the property.

Right. So exactly.

Definitely cross all your T's and dot all your I's. All right, well, that's all that I have for you guys today. We have for you guys today. We always like to end this with.

Invest smart and live happy.

Bye, guys. Nothing on this show should be considered specific personal or professional advice. Please consult an appropriate tax, legal, real estate, financial or business professional for individualized advice. Opinions and information on this show are not guaranteed. All investment strategies have the potential for profit or loss.