Getting ready to pull the trigger....questions....

[David Alter]

I've been looking at multifamily homes for the past few weeks with my realtor. I have found one that peaks my interest. The location is good, rent is solid and price is decent. My next step would be to make an offer and get the inspection done, but there are some issues I'm concerned with and would like some opinions. 

-It's an older home (early 1900s). It has a 60amp fuse box! Other than "A Christmas Story", I haven't seen a fuse box since I was a kid. The home is a licensed rental and has been operating like this for some time. Is this something I should be concerned with?

-The home has asbestos siding. It's in decent shape and is not cracking or falling off. Should I be worried about the future costs of residing the home? I believe I can just apply vinyl siding over top of the asbestos without the ordeal of removing it.

Thanks in advance to the BP community!

[Jason Bott]

@David Alter The 60 Amp fuse box will be an issue for almost every insurance carrier in the market.  Their are stating that the electrical usage for modern day renters, with all of their electronics, TVs, etc., surpasses the ability of a fuse system.  All of this ending in an electrical fire.

2 years ago you could insure a property on the agreement that you would upgrade with in the next 12 months.  Lately, I have not seen any insurance carrier issue a new policy with the fuses.

I would do the following as part of your due diligence,

1)  Get an insurance quote in full disclosure of the fuses.  You can use this increased cost to negotiate with the seller.  The seller most likely has a grandfathered insurance policy that allows the fuses at a discounted rate you can no longer get.

2)  Get an insurance quote based on the upgraded system so you can run some up to date #'s on the property.