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What They Don’t Tell You on TV

The Unseen Costs of Renovating Old Houses

I’ll admit it — I got into this business partly because of This Old House. Saturday afternoons, I’d watch Norm and the crew make miracles out of rotted Victorians and century-old cottages. They made it look fun. Inspiring, even.

But I’ve learned something over the years: what makes for great television often makes for a terrible investment.

When you’re flipping or rehabbing houses for profit — especially on a timeline — old houses are dangerous territory. There’s beauty, charm, and craftsmanship you can’t replicate today, but behind those plaster walls and ornate trim lie hidden costs waiting to ambush your budget.

Let’s pull back the plaster and look at the real numbers.

⚡ 1. Electrical Systems

Typical era: 1940s–1960s

Common problems:

• Knob-and-tube wiring (no ground, a fire hazard)

• Aluminum branch wiring (used in the late ’60s, known for loose connections and overheating)

• Undersized panels (60–100 amps vs. modern 200 amps)

• No GFCI protection

Typical repair cost: $6,000–$15,000 for full rewiring; more if walls must be opened.

Electrical updates are often unavoidable. Old systems simply weren’t designed for today’s loads — HVAC, microwaves, computers, and endless chargers. Rewiring isn’t glamorous, but it’s non-negotiable for safety and insurance.

🚰 2. Plumbing Problems

Typical era: pre-1980s

Common issues:

• Galvanized steel pipes that clog and corrode

• Cast-iron drain lines that crack or collapse

• Outdated fittings that leak at every joint

Typical repair cost: $5,000–$20,000 depending on house size and access.

Plumbing issues aren’t always visible — until you open a wall and find a rusted pipe ready to burst. Add another few thousand if the drains are buried in a concrete slab.

🧱 3. Foundation & Structural Surprises

Typical era: pre-1960

Common problems:

• Settling or bowing due to inadequate footings

• Rotten sill plates and beams

• Termite or water damage hiding behind finishes

Typical repair cost: $8,000–$30,000 (and sometimes double that).

Old houses move — and not in the fun way. Expect uneven floors, sticky doors, and cracks that whisper “budget buster.”

🌡️ 4. Lead Paint

Typical era: pre-1978

If the house was built before then, assume lead paint is present.

Cost: $3–$10 per square foot for certified removal; a whole house can run $10,000–$25,000+.

Even a small sanding job can turn into a regulated hazmat situation. The EPA’s Renovation, Repair, and Painting (RRP) rule adds compliance costs and delays that surprise first-timers.

☣️ 5. Asbestos

Typical era: 1930s–1970s

Where it hides: floor tiles, pipe insulation, duct wrap, old siding, ceiling texture (“popcorn”), even adhesive under vinyl flooring.

Abatement cost: $3–$7 per square foot; $5,000–$20,000 for whole-home removal.

If you disturb it, you own the cleanup — legally and financially. Testing first costs a few hundred dollars and is worth every penny.

🪵 6. Framing & Carpentry Quirks

Typical era: pre-WWII

Common issues: balloon framing, non-standard lumber sizes, out-of-square walls, or creative “repairs” by previous owners.

Cost: $2,000–$10,000 for reframing sections; more if floors sag or walls must be rebuilt.

Old houses weren’t built to code — mostly because codes didn’t exist. Expect custom carpentry and uneven everything.

🧊 7. HVAC and Insulation Deficiencies

Typical era: 1950s–1970s retrofits

Issues:

• Ductwork too small or leaky

• Asbestos insulation on ducts

• No insulation in walls or attic

Cost: $7,000–$15,000 for HVAC; $2,000–$8,000 for insulation.

Energy inefficiency alone can wreck your operating numbers, especially if you plan to hold the property as a rental.

🏡 8. Roof & Water Management

Issues:

• Old roofing layers stacked on top of each other

• Missing flashing or improper ventilation

• Gutters dumping water toward the foundation

Cost: $8,000–$20,000 for full tear-off and replacement.

Water is the enemy of every old house. It seeps, swells, rots, and destroys — quietly and expensively.

🪞 9. Windows, Doors & Energy Leaks

Cost: $500–$1,500 per window for quality replacements; doors add another few thousand.

Historic windows may look charming but leak air like a sieve. Restoring them is an art form — and rarely cheap.

🧰 10. Code & Permit Complications

Risk: $1,000–$10,000 in permit delays, architectural revisions, or city “corrections.”

Many old homes have undocumented work — electrical, plumbing, or additions — that never passed inspection. Once you pull a permit, the city may require everything to be brought up to modern code.

🏛️ 11. The “Historic” Headache

And if you think the surprises stop there, try buying a “historic house” or one located in a historic district.

Every city defines those terms differently, but the common theme is regulation. You may need approval for things as small as paint color or window style, and “modern materials” are often forbidden.

Ask me how I know.

I once had a contractor repairing a “historic” house — I didn’t even realize it had that designation when I bought it — and a neighbor actually called the authorities because he was using new lumber. She wanted him to use “historic wood.”

Apparently, regular wood wasn’t old enough.

The point is, if your project involves anything “historic,” your rehab just got slower, more expensive, and far more bureaucratic. Expect layers of approvals, specialty materials, and experts who charge extra simply because the word “historic” is in the job description.

💡 Roger’s Rule: Inspect for Insight, Not Negotiation

If I even think about buying an older house, I hire a professional home inspector — not to beat up the seller, but to figure out if my offer price actually works.

The inspection gives me clarity: Can I budget this realistically, or is this a money pit dressed in charm?

If the inspector finds something major, I exercise my right to cancel during due diligence and move on.

That thousand-dollar inspection can save you fifty thousand in surprises.

📊 Why Hedge Funds Don’t Buy Old Houses

Institutional investors figured this out early: they can’t standardize or predict the risk. Every old house is a snowflake — unique layout, hidden history, unpredictable costs. For volume buyers, that variability kills efficiency. They prefer newer construction with repeatable repair models and reliable timelines.

The math is simple:

🧮 The Takeaway

Old houses can be wonderful — if you buy them for the right reasons. If you’re restoring one as a passion project or forever home, God bless you.

But if you’re buying as an investment, make sure the numbers reflect reality, not nostalgia.

Charm doesn’t pay the electrician.

BONUS Takeaway for Home Buyers (and their Agents)

That old house may look like a beautiful restoration, but please take heed - list everything from this article and ask the seller to disclose exactly what they found and what they did about it during their renovation. Flippers have been known to cut corners when the budget is busting. If the seller is less than completely forthcoming about all details, walk away and thank me later.

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