Rental Property Investor · Binghamton, NY · Member since 2012 · 27 posts · 12 votes
After many letters and in person meetings we were able find an off market deal and put a very nice 6 family brick building under contract. Just had the inspection on Tuesday. The building is very well built, but it has aluminum wiring for the outlets and light fixtures. This is something we have never encountered before in upstate NY, as most of the properties we own are close to 100 years old. I want to know if anyone has experience with aluminum wiring and if it is a automatic reason to walk away. I have had to rewire a two family before due to knob and tube wiring (which was not a pleasant experience), and would prefer not to rewire this whole six family, which would definitely be a deal killer. Is this wiring insurable? And will it be insurable in the future, insurance is a one year contract, and I would hate them to tell me 3-5 years down the road that they will not renew my contract. Otherwise the building is a gem, something we do not much supply of in upstate NY. Thanks
I don't believe aluminum would be an insurance killer. It was commonly used in the 70's-80's I want to say. Your best bet would be to contact your insurance company and ask them.
Can you use it to drive down the asking price? If it's an issue bring it to the attention of the Realtor/seller. Get a quote from a contractor even if you're going to do the work on your own. Just my thoughts
We will most certainly ask them to remedy the aluminum wiring issue or to give a price reduction, but the contract price is already below what they purchased the property for in 2008. I don't believe they have any room to move unfortunately, but we will try.
I have had plenty of experience with aluminum wiring. I would contact the local electrical authority in your area ( the guys that do the inspections) In Canada we don't see it as such a big issue. Our local inspector had no problem with aluminum wiring, but each area is different.
The concern with aluminum wiring is that it oxidizes over time and can cause bad connections and heat...and then possibly fire. It is only the connections that are the issue. Also you must replace any plugs and switches with aluminum compatible units or the alternative is to use pigtails that join the aluminum wires together and branch off with a copper wire to the plug or switch.
In all cases every connection should have a compound called Nolex which is a paste that protects all connections from corrosion making them safe. Our inspector in our area has been fine with this upgrade to the system and passed several of my aluminum wired houses. It does take some time and will cost a you a fair amount of money if you hire this out. In the big picture though I don't see this as a deal breaker. Not all insurance companies here see it as ok, but with a proper electrical inspection most are fine with aluminum.
I would certainly use this as a little wiggle room to see if you can get the price down a bit regardless of the purchase price. I guess it will depend on the motivation of the seller. They just might be tired of being a landlord and happy to get out....
After many letters and in person meetings we were able find an off market deal and put a very nice 6 family brick building under contract. Just had the inspection on Tuesday. The building is very well built, but it has aluminum wiring for the outlets and light fixtures. This is something we have never encountered before in upstate NY, as most of the properties we own are close to 100 years old. I want to know if anyone has experience with aluminum wiring and if it is a automatic reason to walk away. I have had to rewire a two family before due to knob and tube wiring (which was not a pleasant experience), and would prefer not to rewire this whole six family, which would definitely be a deal killer. Is this wiring insurable? And will it be insurable in the future, insurance is a one year contract, and I would hate them to tell me 3-5 years down the road that they will not renew my contract. Otherwise the building is a gem, something we do not much supply of in upstate NY. Thanks
I am new to BP and have been browsing through old threads and came across this one, so thought I would comment. We own two fourplexes in the Phoenix area with aluminum wiring. As others have said, it can be insured and retrofitted without having to completely rewire the place. Call some insurance brokers to see what they offer regarding insurance with aluminum wiring. To retrofit, you can use the purple wire nuts with some Nolox to add the copper pigtails at each outlet, or use Alumiconn connectors to add the copper pigtails. Either way, you should have it done by a licensed electrician with experience in this type of retrofit.
FYI, aluminum wiring was used in some construction from the mid-1960s until around the early 1970s in order to save copper for the Vietnam War.
Hope you will update us on whether this deal worked out!