Hi BP Community!
Looking into a property right now with a basement oil tank (above ground). I know nothing about oil tanks except for the fact that they're potentially risky. I've read some things but I am also no expert to tell whether or not its "clean". I know this would be inspected and such, but I want to take precaution and just view this house one more time. What are key things to look for?
How much would the removal of this possibly cost if this was a clean tank? Is it worth buying a house with something like this? This is my first property and I don't want to get off on the wrong foot. I have experience with the 10k chaos my mom dealt with in regards to her below ground oil tank. How much would my homeowner's insurance increase for having this above ground tank (estimated of course)?
Any input regards ABOVE GROUND BASEMENT tanks would be great!
I don't know much about them or about owning a home with one in it. What I can tell you is that I've removed or helped remove two of these thanks with very little issue. All that was used was a drill and a reciprocating saw with a couple of blades. We made a couple of holes at the bottom to drain any left over oil from the tank into 5 gallon buckets, although in both there was barely a gallon left. Then just cut the thing into pieces with the saw to get rid of it. Depending on your local you might need to put the scrap in a pick-up truck and drive it to the dump yourself.
You might also want to put down several tarps as this can be messy.
@Brittany Dave Welcome to BP!
As others have posted, above ground oil tanks (in a basement) in the Northeast are pretty common. You want to visually inspect for leaking or rust. I just replaced one a few months ago and it was $1500. Not terrible. Never had an issue regarding insurance; they're mainly concerned with buried tanks.
Of course, if you can switch to natural gas, definitely do so. In VT there's natural gas in only some areas. Far cheaper to operate too, and usually rebates to switch over from the gas company or your state, or both.
I did this about 5 years ago and it cost 375 to remove an old in us one. House had 2 and I went with just the one tank.
Recently, a friend got a quote for a removal and replacement of an In use tank about 2200 for regular tank and 2900 for a sealed (something something...stop listening (haha)) tank with I think a 30 year warranty.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Join the Largest Real Estate Investing Community
Basic membership is free, forever.