Rental Property Investor · Detroit, MI · Member since 2009 · 20 posts · 3 votes
I own a old school building that is 60,000 sqft. I have converted part of it into a apartment for me and buddys to go hunting. I am looking at getting a loan on it, so I can be done with this pesky land contract. I owe $20,000 and would like to get a $50,000 loan for repairs and payoff. But the building has asbestos and lead paint. The asbestos is in the boiler area which is in a sealed room with a door that says warning asbestos. So im assuming this is fine and schould not hurt me getting a loan. They only closed the school two years ago and it was fine for them. Again this school is located in the upper pensila of michigan. Just wondering if this asbestos and lead paint will hurt me getting a loan. It is zoined R1.
I have a similar question - we are currently evaluating a potential acquisition of a large MFH in Texas which has asbestos in encapsulated areas.
The property was financed by Wachovia about 5 years ago with the bank very well knowing of the asbestos.
Does anyone have any idea whether banks are still lending in case a property has asbestos in certain areas?
There has never been a problem here in CA obtaining a mortgage when asbestos is present. If it is known and not disclosed, that's another story. Almost every home here built in the 50's and earlier contains asbestos. That would make for a lot of un-financable homes! Talk to your lender to verify.
I would remove all asbestos and test water and air pretend you live there. We leave everything better then we found it then no surprises with Bank refi. and no future lawsuits etc.