All Forum Posts by: Stephen Masek

To me, the fact that funds are trying to get into investing in single family houses just proves that now is an excellent time to invest in single family houses. 10%+ returns are not hard to find, but you have to be careful and understand the area, potential rents, fix-up costs, future maintenance costs, taxes, insurance, and property management costs. Even if you have a property manager, they have to be managed. Noting worth doing is easy.

You need to find a good environmental consultant in your area to inspect that 1955 building for asbestos and lead-based paint. Both are highly regulated, and there are special rules for lead-based paint in residential buildings. The consultant should also check for fluorescent lights (PCBs & Mercury), as they cost money to dispose.

Also, before you buy, you should obtain a Phase I Environmental Site Assessment. If you own the property for any length of time, you are 100% liable for cleaning up pollution or contamination caused by previous owners/uses. That could exceed the value of the property, or even your net worth.