Asbestos, Lead Paint, And more. NJ 3 family

[Joseph Tarallo]

Hi I am in the process of maybe purchasing a huge 3 family home for a pretty cheap price, however it needs a lot of repairs.  We do our own work so I will save a lot of money that way.   There is some things I am concerned about like Lead paint everywhere, and Asbestos on the piping in the basement.  The problem is how will I know if the asbestos is throughout the house inside the walls and ceilings or just in the basement ? 

My other question is when I get inspections from the state to rent it out what are the requirements I will need to meet when having lead paint or asbestos in my home.  Does it have to be completely removed or just covered the proper way? 

[Vicki Stewart]

Not only could you face some pretty hefty fines, as Jim put it, but you, your family (if you’re doing the work at home) and your tenants could face some pretty serious health consequences if not done properly. As a nurse case manager for lead poisoned children, I can’t tell you how many cases I’ve seen as a result of DIY projects or hiring non-certified contractors.

If the paint is merely crackling, not flaking, you can encapsulate it with fresh paint after thoroughly washing the area with soapy water. If it’s flaking, it should be removed.

My understanding is that, unless the work is being done on your own residence, federal law requires you to hire a certified lead abatement contractor to remove it even if the house is unoccupied because it requires thorough clean up afterward. It doesn't matter if the property is in an LLC or your own name.

If you work on your own home, research it first as there are many precautions. For example, lead paint should never be dry scraped or sanded as it creates lead dust which is then inhaled or ingested. You can start your research here .

Any work with asbestos, whether in your own home or not, should absolutely be done by certified contractors and you should educate yourself on the precautions to be sure they are followed.

As an investor, I know these regulations can be a real pain and increase costs. However, the reason the law is so strict is the serious health consequences. Lead poisoning in children can lead to neurological damage that affects their ability to concentrate and learn, cause behavioral problems and result in a lower IQ…for life. It has also been linked to violent behavior when these children reach adolescence and early adulthood. Very high levels can be fatal for children and adults.

As for asbestos, it causes a rare and very aggressive form of cancer. Its prognosis is usually not good.

I apologize for the long post but, as you can tell, I’m passionate about public health. One of the things I like about real estate is that I can incorporate that passion in my investing by providing safe and healthy housing as well as educate other investors on how to do the same.

Regarding your pending purchase, I’d say do the math on safe renovations. If the numbers still work, great! If not, pass. The health, legal and financial risks are not worth it. There will be other deals.