Help! Will asbestos in a rental KILL my ROI?

Question

I found a great deal on a 1930’s era house, remodeled, and it sits on a 1.00 acre lot that I could build two additional rentals on. HOWEVER, there is asbestos in the home, as most homes of this time have asbestos somewhere.

What’s the risk? It’s something I’ve never dealt with, as we typically just do new construction deals.

This is in Texas, there’s no current leaks, and it’s not testing positive for asbestos. It’s just in the insulation and a couple other areas.

HELP!

Russell Brazil · Answer

Asbestos isnt really a big deal in my market. We typically see it in floor tile. When we refinish the basement, we just lay a new floor over the old asbestos tiles and dont disturb it.  We have some houses that have it as siding, and thats no big deal either.

Dennis M. · Answer

What are you scared of ? Geez ,Just rent it out and don’t worry about it . All my stuff probably has asbestos . That’s good insulation and it really stops fires ! They really knew how to make stuff back then!

Arwen Lothlorien · Answer

Our properties are generally older and probably have lead paint and asbestos. I give tenants an official notices on both topics, basic legal ones saying we have not tested but it is likely due to the age of the house. We are in A/B areas and haven't had an issue. That said it could complicate rehabs depending on what type.

Sylvia B. · Answer

Asbestos doesn't "leak". It is not a problem unless it is disturbed, gets in the air, and is breathed in. Don't disturb it and it it's not an issue. The only way I can imagine a tenant being "exposed" is if they go in the attic and fluff up the insulation. Or if they cut a hole in the ceiling and let it pour down on them.

Jess White · Answer

@Russell Brazil. Very true. I just try to think through potential liabilities. Such as, what happens if a leak happens and the tenant is exposed?

Jess White · Answer

@Jose Linares That’s a really good point, no remodeling necessary on this unit. That’s what makes it desirable given the price.

Jose Linares · Answer

@Jess White Will you be doing any additional renovations that would disturb the insulation that is positive?

If the asbestos-containing material will not be disturbed, there are no issues.  Double check with your insurance agent that you have coverage for asbestos, just in case there is a leak down that line that may require asbestos abatement.

Help! Will asbestos in a rental KILL my ROI?

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