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Updated over 5 years ago,
Accounting for asbestos/lead abatement costs
I wanted to understand what other house flippers are doing to account for the cost of asbestos and lead abatement when purchasing a property. The costs can be significant if there is asbestos and lead throughout the home. I know testing can be done, but in Denver many of the wholesalers require a $5K - $10K non-refundable deposit. And, if I was to assume an extra $20K-$30K of additional costs for any flip that requires significant demo work, then that would really kill most deals. Do I need to become more familiar with what to look for in a home and then estimate the amount of the abatement costs more accurately instead of using a worst-case number? Thank you.