Knob & Tube Wiring 🔌 💡

[Ryan Ness]

This property is located in Lafayette, IN. Especially on an apartment building, are there any ideas of difficulty to insure? If so, is there a best recommendation for the removal/deactivation of the wiring? I do not anticipate a complete gut job and rewire, but there is some potential existing above only one unit. I understand that this can sometimes lead to more wiring than was initially expected, so I need someone who is up for the challenge and at a price that's hard to beat!

The presence of the wiring was noted a week or so after we were in contract, but I also assumed from the start that it may come up on inspection due to the age of the property, and its location. I know that the appraisal may work to my advantage as well if they flag it. I have already budgeted $25k for repairs on the property, but this was not one of them. My main concerns are health & safety, along with the ability to insure the property for $300 or less per month. This is a 4-unit built in 1915, that was converted from a large single family initially. PP is $250k, with a fixed 7.7% interest rate for 30yrs. Goal is getting rents to market at $950+/unit. The appraisal and inspection are both taking place today, and I expect to review them either tonight or early tomorrow morning.

[Max Ferguson]

Push out inspection objection (or whatever you call it in your state) and get an electrician in there for a full quote. Could be an absolutely gigantic cost and ruin the deal for you, or could be small. Ask for that off the purchase price or however you see fit, or kill the contract. Appraisal will not flag that, but the inspection will. 

Good luck and let us know what you decide!