Buying 4 plex off market with questions

[Michael King]

Good day BP people, I believe I'm close to pulling the trigger on a fourplex that I found off market. We have come to a price and will be working out the details shortly for the transaction. I had a tour of the basement; owner was out of town and he doesn't want me disturbing the tenants. I have a couple of questions for those that own older multi family properties.

1. I found fabric coated wires. My research leads me to believe it is not aluminum wire, but can't be sure. My insurance agent says to get it certified safe by an electrician. Does all this sound plausible? Or more realistically a rewire in short order?

2. I took photos of the wiring, and in the background I noticed insulation on top of the foundation wall...I didn't notice when I was there, but saw it when I was zooming in on the photot to identify the wire types when I got home...I did some some research and it looks like asbestos. The owner assures me that it's fibreglass batts...but I'm not sure. Thoughts on asbestos insulation? This is probably my biggest red flag if it is asbestos, as it is visible and doesn't look in good shape. 

3. Built in 1950, I have to provide a lead based paint disclosure to the tenants and leaflets from HUD. Do you just print them off and hand them out, get the disclosure signed? Of do you order the pack of 50 color ones from the GPO? $66 is $66 after all.

The photos show the wiring, which looks in good condition, and the gray insulation with white fluff at the bottom of it. I always thought fibreglass batts were pink or yellow, no expert though.

When inheriting tenants, as in this case there are 4 rented apartments already in place, do you knock on the doors of the tenants to meet them? And if you do, what information are you trying to obtain or deliver? The current owner seems to not want me disturbing them...I see that as a red flag though. Am I misguided on that thought? 

Apart from a standard building inspection, what other things might I consider? Calling anyone from the city with respect to code violations? Or fees/taxes levied against landlords?  I've not bought a building this old before, nor have I bought a multi family before. Any thoughts, advice, suggestions, anything, will be very much appreciated!

Thank you

Michael King St. Louis MO,

[Account Closed]

I would definitely contact a few general contractors, crack repair companies and electricians. You always have the right to request that the seller pay for repairs. You may be shocked when you find out how much it costs to excavate foundation walls and seal them from the outside. 

The problem I see is' it is very easy to purchase a property in its current condition and sometimes impossible to unload the property to savvy buyers.