BiggerPockets

Rehabbing And The New Lead Laws

Lead Based Paint Regulation and Flipping Homes

With the finalization of the EPA's rules on remodeling and lead based paint, many flippers and rehabbers are in a quandary over how it affects them and their business. First off let me say that this is no rule to mess with. Fines for violations for the EPA Lead laws start at $37,500 per day of work! This goes up if they can prove that you new about the law and went ahead with the work anyway.

My first piece of advice will be to avoid older houses. I know that may not work for a lot of you, but the fact is that banks aren't going to test their homes for lead and you know they aren't going to pay for lead remediation in a short sale. But if you have no choice to but to work with older homes, look for ones that don't need major renovation. Remember, we are only talking about the paint here!

Second step is to test for lead in your inspection or feasibility period. Quicky lead tests are available in most paint stores now. Sure it is a few bucks, but it is worth it. You may also try and make friends with a lead abatement company to get a discounted rate on testing for lead with their high-tech equipment. Not all homes built prior to 1978 have lead, but the older you go the more likely it will show up.

If your flip does have lead paint, and you still want to flip it, just be sure to use a certified contractor that has been through the class and can handle the work correctly. Of course there will be some added costs involved so budget it in.

The EPAs lead law is not the death knell for flipping and rehabbing older homes, but it does decrease the amount that you should pay for them and does increase your cost and headache factor. Just be aware of the situation and follow the rules, because getting popped on this one will cost you big time!

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