Buying a multi-family in the IBM plume?
Endicott, NY · Member since 2017 · 6 posts · 1 vote
I found a 4 unit fully rented in Endicott NY where in 1979 there was a chemical spill. The clean up has been going on for several years. I did not know anything about this till after I put down an offer and hired a lawyer. My lawyer alerted me to the plume. Should I walk away this is my first endeavor into becoming a landlord. Thanks
Hi, @Rebecca Mochel! We had a home inspector come and speak to the Southern Tier REI Club a while back, and we discussed the IBM Plume at that meeting. My understanding is that it's very similar to deal with for homeowners as is radon. Everyone living in the area has municipal water - no worries there. What happens with the chemicals from the plume is that they vaporize over a long period of time, and the gas vapors come up into a basement. Apparently, the vapors can be drawn away from the house with the same type of system used to relieve radon from basements. Many if not most of the homes in the area have radon/ vapor mitigation systems in the basement.
While I personally wouldn't live in the Endicott plume zone- (the neighborhood isn't super classy besides the chemicals) - I would be more than comfortable to own rental property down there, even if it was as my first purchase in the Binghamton area. What I would suggest- have your home inspector advise you about whether the mitigation system is present/ working etc. If there is no mitigation system in place, I would negotiate that off the purchase price. Last time I had a quote for a system installation, I believe it ran about $1500.
Hope this helps, and good luck.
@Rebecca Mochel it all comes down to risk tolerance and you willingness for potential future headache.
Personally, I have a low threshold for both so I'd walk away. If you have earnest money deposited and the seller didn't disclose this before you sent the offer, you should be able to recover all your money back.
I would walk away. If this is your first deal, you don't know what you don't know. Way too much risk there. Cheap does not always equal a good deal. Don't make your first experience in acquiring a rental property so painful that you never want to buy again.
@Rebecca Mochel, I lived in the Binghamton area for a long time. Personally, I would not buy a *personal residence* within the plume. When I was last shopping for a house in the area for me and my family (2008-2009), I avoided that area. I would have similar qualms if I were renting. But that is me and my family. I don't want to take any unnecessary risk when it comes to our health, and my wife especially is very conscious of what we put in our bodies (natural food ingredients, avoid certain chemicals, etc - she's starting a blog on her experiences/life with these topics - good stuff!).
That said, there are many, many people who live in the plume. While it's true that a number of them settled before the plume was discovered, not all did. There are a lot of people who just don't seem bothered by it. I haven't kept up on the news of the plume for a long time, but years ago they were working on cleanup efforts. I don't know the status of it anymore or the effects it may or may not have on the residents. But as far as a rental property, I don't think it will affect your tenant pool too much. Neighborhood and condition of the property are still much likely to be bigger determining factors. And if you're concerned about the health of your tenants or any legal ramifications, I doubt it would be an issue. If you want to CYA, just make sure they are aware of it and that any future tenants are aware up front. Better yet, ask your lawyer since he's the one who told you about it!
All things being equal, I'd look for property outside the plume, just the same way I'd favor some neighborhoods over others. But if you found a good property and a good deal, I'd say go for it. No place is perfect.
That's my opinion.
I found a 4 unit fully rented in Endicott NY where in 1979 there was a chemical spill. The clean up has been going on for several years. I did not know anything about this till after I put down an offer and hired a lawyer. My lawyer alerted me to the plume. Should I walk away this is my first endeavor into becoming a landlord. Thanks
Hi, @Rebecca Mochel! We had a home inspector come and speak to the Southern Tier REI Club a while back, and we discussed the IBM Plume at that meeting. My understanding is that it's very similar to deal with for homeowners as is radon. Everyone living in the area has municipal water - no worries there. What happens with the chemicals from the plume is that they vaporize over a long period of time, and the gas vapors come up into a basement. Apparently, the vapors can be drawn away from the house with the same type of system used to relieve radon from basements. Many if not most of the homes in the area have radon/ vapor mitigation systems in the basement.
While I personally wouldn't live in the Endicott plume zone- (the neighborhood isn't super classy besides the chemicals) - I would be more than comfortable to own rental property down there, even if it was as my first purchase in the Binghamton area. What I would suggest- have your home inspector advise you about whether the mitigation system is present/ working etc. If there is no mitigation system in place, I would negotiate that off the purchase price. Last time I had a quote for a system installation, I believe it ran about $1500.
Hope this helps, and good luck.