First 2F under contract I’m nervous
Hi there I need some help on this property. It’s in South Jersey. My purchase price is for 400,000. It’s a two family with a tenant upstairs paying 2K a month. The property is high on lead they said they had a test done , I’m definitely worried about opening walls or ceilings that have huge cracks in them and disturbing the lead. Well I would like to fix those those by demoing it and repair with Sheetrock Maybe like 2 ceilings and a wall to be sheet rocked. All the windows are old. I Would have to replace the ones I can’t open and I guess just encapsulate every window that works. The electrical wiring is knob and wire living rooms do not have lighting. It’s a 1890 built house. I don’t have tens of thousands of dollars to repair a house or do rewiring. I would still have to renovate bathroom & kitchen just wondering if a lead property would be worth it. Payment 3300 looking to live for a year or two and move out to rent both units while I work on the house.
I’m getting a home inspection & a lead test before I pull the trigger on this property , 1,100 home inspection yikes.
I need help man I don’t want to get my self into a whole rehab I’m a union carpenter so I will be doing most of the work my self for sure that would save me something.
Most Popular Reply
That's a tough property for your first and that seems like an expensive inspection, depending on what you are requesting.
Lead brings you expensive liability risk. It is everywhere that is painted and probably everywhere else if the paint has expensive chipping and tenants are telling you there are lead problems. Get an assessment and quote from a few lead remediation companies. Do not buy the lead liability. Instead, engage a lawyer to draft an amendment to the agreement that Seller retains the lead liability for the current and former tenants. They might not agree and that tells you something.
You should rewire all active knob and tube wiring. Your U&O should require it. Insurance will likely require it too if they are aware.
I wouldn't consider this deal. A 130+ year old home in general will be expensive to maintain. This one has some significant up front issues that you could be liable for.