Horse hair plaster and lathe. Is it worth purchase?

[CJ M.]

Hello all,

Have an offmarket seller looking to get 50K on a 1950's 2/1 1000 sqf Cape Cod he's owned for 40 years (it's been vacant for last 2 years). Est ARV is 100-120K (good school district and solid B neighborhood).

I haven't walked it yet (I will next week), but according to seller, it just needs paint, flooring throughout, new kitchen countertops (possibly cabinets too).

Anyway, he mentioned it's horse hair plaster and lathe throughout. I've never dealt with that before but after researching it appears there may be some asbestos and possible anthrax in the plaster? And electrical was/is? knob & tube? (he said there is 100 amp panel)

My concerns of keeping it as a rental is liability if I don't replace everything with drywall...which would prob kill the deal for me. Should I be concerned if there is no crumbling or major issues with the plaster? I'm thinking I maybe just flip it...but will that deter buyers?

Any feedback is appreciated

[Jake Baker]

@CJ M.

Every house has a number. If the plaster is intact (not crumbling, cracking or showing signs of significant damage), it may be safe to leave. However, crumbling plaster would necessitate removal and replacement, potentially with drywall. Get the plaster tested for asbestos.

If renovations significantly reduce your profit margin, wholesaling the property to a more experienced investor might be more viable.