Good afternoon all BP Users:
I currently have a contract that I can sign tonight for a house built in 1930. The exterior is wood and the wood seems to be chipping. Has anyone had any issues with lead paint? Is it worth purchasing this investment property?
I bought a 1920's home with LBP. I hired an inspector (which was mandatory for the FHA203k) and he scanned the whole house. I was surprised at how little LBP was present. Because it was so expensive, they really only used in in high humidity areas (like trim in the kitchen/bath or windows). Also, because the LBP had been painted over so many times, it was very deep. The inspector said it wasn't a hazard, even though there was peeling paint.
Because I hired an inspector though, I now am legally obligated to disclose the presence of LBP to every tenant I rent to. If I were you, I would use the LBP issue as a bargaining chip to get the price down, but I would totally still buy it. Once you own it, make sure the repair all the wood and put a fresh coat of primer/paint on it. you'll be required the disclose to all tenants to potentiality of LBP because of the age of the house. Use that moment to tell them the basics: don't eat paint chips, don't do any renovations and if you see some, vacuum it.
FYI, many LBP inspectors are also licensed to paint over/abate know LBP areas. Just a thought...
With a home that old, there are bigger issues to worry about than LBP, like 80 year old plumbing :/
@Jenna Stonecipher Thanks for the advise. Yeah this house has a great Cash on Cash Return (35%) and great cash flow. I just only put $300 a year for lead paint testing for tenant renewal.
@Jenna Stonecipher Does a home inspector usually find the plumbing issue during inspections? Sorry this is my first investment property, just want to make sure I have most my basis covered. Also, was it expensive to paint over?
@Michael Wu You may want to read previous posts about lead based paint. There has been quite a bit of BP discussion on this matter. Use the "search" feature. About buying the house, don't let the LBP factor scare you. All of our rental properties are pre-1978. Older homes can be wonderful investments.
Marcia Maynard, Fischer Properties | Podcast Guest on Show #83
@Michael Wu If there are plumbing issues, then a good inspector should be able to alert you to it. However, there might not be anything wrong right now. Given the age of the home though, it's only a matter of time before something needs addressing. Make sure to have a savings to cushion for expenses like that. I definitely would not let it stop me from buying an older home though. I love my 1920's home: cast iron pipes, lathe/plaster, window weights and all :)
Awesome thanks for the great advice/replies.
@Marcia Maynard Yeah, I've read through the posts but the thing that was worrying me was all the lawsuits MD (primarily in Baltimore) seems to be getting from lead based paint. It shouldn't be a major concern for me because I'll be renting to college students for the most part and I'm not purchasing in Baltimore.
@Jenna Stonecipher That is one of my major concerns with purchasing this house, the age. There is probably already a bunch of things that may go wrong because of the age, plus it is a homepath REO so they don't disclose anything.
Hopefully this is a good house to begin my real estate investment journey!
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