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. 

[Chris Barrett]

When I google anthrax in plaster, the only results I get are for the UK. I have never ever heard of anthrax in plaster being a concern in the US. Also if it's horse hair plaster they probably wouldn't have used asbestos but you could get it tested. 

Either way, those are only concerns if the condition of the plaster is in dire straits. 

[Alecia Loveless]

@CJ M. I’ve had horse hair plaster in two old Victorians. For the most part it was in excellent condition. In the event that it’s in relatively good condition you can make repairs to it with Sheetrock compound if you clear away the old plaster and know what you’re doing with the Sheetrock compound.

[CJ M.]

Thank you everyone for the response. I'll be walking the property later this week and will have a better idea of the condition.

So it sounds like if it's in good shape, it shouldn't impact my ability to flip it?

[CJ M.]

Decided to move forward with purchase. (Not sure if I'll flip or keep as a rental). Plaster is in good shape and comps are actually 135-140K. Rent would be 1295-1395/mo.

Appreciate everyone's help!