Couple Bought a 140-Year-Old Home for $550,000 and Spent $172,000 Renovating It

Why It Matters

Rising renovation costs and steep mortgage rates make historic home projects financially risky, underscoring the importance of thorough budgeting for prospective buyers.

Key Takeaways

• Couple bought 140‑year‑old Atlantic Highlands home for $550k.
• They financed with 15% down, 7.125% 30‑year mortgage.
• Renovations cost $172‑$175k, funded via savings, 401k loan, equity.
• Preserved historic trim while modernizing kitchen and expanding rooms.
• Monthly mortgage payment near $4,000 impacts cash flow.

Summary

The video follows a couple who purchased a 140‑year‑old house in Atlantic Highlands, New Jersey for $550,000, detailing their renovation journey and financing structure.

They put down $82,500 (15% of the price) and locked in a 30‑year fixed mortgage at 7.125%, resulting in a monthly payment just under $4,000. Renovation expenses have topped $172,000‑$175,000, financed through personal savings, a 401(k) loan, proceeds from a prior employer’s equity sale, and ongoing income.

The homeowners stress preserving original trim and historic character, saying, “I don’t want to make it feel like a modern kitchen,” while also opening walls to create larger living spaces. They credit flexible contractors for adapting to design changes throughout the project.

The case illustrates how high interest rates and substantial renovation budgets can strain cash flow, highlighting the need for careful budgeting when tackling historic properties.

Original Description

Amanda and Vincent DeRise closed on a 140-year-old home in New Jersey for $550,000 in 2024.

The couple’s realtor told them the house was for sale by an older man who had raised his family there and did not want to sell it to an investor. “I wrote a nice letter to the older man stating that we want to take care of this house and bring it back to its former glory,” Amanda says.

Their goal: to renovate the property piece by piece, modernizing the home while preserving its charm. More details on how they did it in the related video.