Buying an old property in Dayton- Lead Paint?

Question

Hi everyone,

Newbie, first transaction, under 25k rental in Dayton OH, minor repairs needed.

Property was built in 1915.  I was told by the inspector that because of its age, I should assume it has lead paint.

As the property owner renting this out i see that I can provide a disclosure.

How have you guys addressed this as investors?

What are the liabilities that can arise from owning a home with lead paint?

What is the cost of removing lead paint (I assume very expensive), or what are other solutions?

My goal is to own the property at least a few years and collect rental income.  I have no experience with this potential issue, however at the moment seems like a major liability in my mind.  I'm hoping to hear otherwise.

Any comments greatly appreciated.

Jon

Randy Person · Answer

Why Dayton, if you are from Las Vegas?  Where is the property?  I live about 15 miles away in Xenia and spent the last three months analyzing many many properties in the east Dayton area (Eastern Hills & Belmont).  Good luck with your venture.

Jonathan West · Answer

@Adam A. this is great information thank you for this.  Sounds like this is becoming potentially a bigger issue.

@Randy Person  because a property that will rent for $600 in Las Vegas costs $140k.  Thanks for the good wishes!  I'll see how I end up!

@Darrin Carey, reading it now!  Thank you all.  Much learning ahead!

Adam A. · Answer

@Jonathan West - In Ohio, I know Cleveland passed a lead paint ordinance a couple years ago.  I've been discussing this issue in details for a while as we're in the middle of fighting to prevent passing such a law in Toledo. The cost will vary significantly which depends on the type of treatment, replacing windows, interior or exterior treatment, is the house empty or occupied?, ctc  Here is more on the subject.

I'm not aware that there is such a law in Dayton at this time. In general, Federal HUD law constitutes that you have to handout their pamphlet and make sure that the tenant sign that they received it. Otherwise, you'll be liable for a $37,000 fine.

Here is the HUD lead paint pamphlet that you need to download and give it to the tenant each time you sign a new lease.

Here is the rental disclosure each tenant in the lease is has to sign and you keep it for your record.

Christina Carey · Answer

Hi Jon,

Any property built prior to 1978 is likely to have lead paint. Lead paint is not a problem unless the paint is unsound (cracked, peeling, etc.) Otherwise, the one place where I would have great concern is if there are painted window frames. The repeated friction from opening and closing the window creates dust that contains lead from the paint. Then let's say your tenants include a small child who is still in the "everything goes in the mouth" phase. They go in for a doc check up, amd find they have elevated levels of lead in their system. Not good - the solution if you have painted windows? Replace them. Google "EPA Lead Paint Booklet" for more info.

I'm curious - I know this is not a listed property, or you would have received the aforementioned booklet, and a disclosure form signed by the seller and the agent. You said you're a newbie - have you done your own due diligence on what the property is worth? There are plenty of $25K properties around here, but just because it's only $25K, doesn't mean it's a good deal. : )

Rob Witt · Answer

@Jonathan West cool. I may be in or around Cedar Rapids soon. If so I'll have to check it out. Thanks.

Jonathan West · Answer

@Rob Witt  I believe one of the Cedar Rapids stores.  Other location is Davenport.

Rob Witt · Answer

@Jonathan West looks good which city?

Jonathan West · Answer

@Randy Person  I am originally from Milwaukee.  Honestly at this point its Dayton because I met a few agents here online that seem to be good at sourcing good value plays.  I'd like to find some in Milwaukee as my father lives there, however I haven't found a good agent/good deal there yet.  I'm certain I'm not looking hard enough.

@Rob Witt  I have a great friend in Iowa currently trying to turn around a Cappriottis sandwich shop there.

@Tyler Amburgy Thanks for your post Tyler.  Knowing that an EPA certified contractor is an owner of these types of properties as well makes sense, and gives me some comfort, as this is my first potential purchase.  I'm sure you didn't intend to give comfort, as this is at my own risk, however I appreciate your input and thoughts very much.

Will see how this transaction wraps up and will keep looking for more!  Always open to looking at deals.  This was new for me, although clearly it shouldn't be as it impacts every pre 78 property sale.

Rob Witt · Answer

Iowa is the same way. when I was renting I always got the pamphlet on lead paint just because the building was that old or older. Good luck!

Buying an old property in Dayton- Lead Paint?

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