rehabbing older homesWhether rehabbing an older home to flip it or simply remodeling to make it fit for a tenant to move in, real estate investors better darn well know about the lead law from the EPA. With a fine starting at $37,500 per day, this is not one you want to mess around with: learn it, know it, obey it. By the way, like we said, that startling figure quoted goes up precipitously if the agency can prove you knew about the law and went ahead with the work anyway. Did we already say this is not one to mess around with. This is not one to mess around with!

Prior to 1978, many common paints used lead as an ingredient. The problem with exposure to lead is that it absorbs into the body through the skin and acts like a poison, causing all sorts of hideous side effects like brain, hearing, or kidney damage, as well as inhibited bone or muscle growth, speech and language problems, and even seizures or unconsciousness. In short, the EPA looked at this and decided it was not safe to use as a construction material.

This is not to say that all houses built before 1978 will have lead in them but the older you get, the more the odds increase. The first advice we can give is avoid older homes. If finances force you to deal with homes that have a few years on them, make sure you use a certified lead removal contractor who has been through the class and has the credentials to prove it.

With the glut of foreclosures on the market today, you might be amazed at how cheaply houses can be bought, with the added benefit that less rehabbing is normally necessary than picking up an old one. Our affiliate, Platinum Properties Investor Network, has even begun recommending specific late model foreclosures to our list members, something we wouldn’t have dreamed of a few short years ago before the sub-prime mortgage crisis kicked into high gear. These days, it almost seems silly to look for an older house, when practically new ones can be bought for significantly less than $100,000 dollars, remodeled for a few thousand bucks, and rented out.

However you decide to proceed with your income investing career from here, we would like to remind you once more – don’t mess with the EPA!

The AIPIS Team

AIPIS.org

Flickr / douaireg