I wish to move forward with the house and am excited about the plans and ideas that I believe the Commission will love. However, there is no way I will move forward without material assistance from the Commission to abate the asbestos and lead paint and to mitigate the cost risks I have with the unknowns regarding what is likely a buried oil tank on the property that will only be revealed during construction.
The numbers DO NOT WORK for me financially at the end of the day with an expected structure of this size even with a small addition to support a buyer like myself paying north of $33K just to get it to a point of being ready and prepared for renovation.
I have shared every evaluation I have paid for on the house -- and I have shared every estimate I have received with the exception of an oral estimate I received from Hazmat Co. of Charlotte concerning a tank that is likely under the rear section of the house according to them.
The costs of abatement alone are approximately $30K. It could be more -- I doubt it will be less of course. The costs of removal of the oil tank if one needs to be removed once it's revealed will be around $3K assuming there is no leakage and costs associated with removing the dirt in/around the tank. The property is not within 100 feet of a water stream, so under the new NC environmental rules, the most I'd likely have to do if there is leakage is remove dirt from in/around the oil tank which would elevate the cost to closer to $5-6K according to Hazmat Co.
I am proposing the following:
1. The Commisson/Mecklenburg County abate -- on their own -- the asbestos and lead paint issues after closing at its cost if you think you can get it done for less than $30K. I will pay whatever costs there are with respect to the oil tank and bear that complete risk; OR
2. The Commission/Mecklenburg County agrees to reduce the purchase/sale price by $25K to pay for a substantial share of the abatement and for the expected costs associated with the tank. If the costs end up being much more -- even more than the $33K in estimates I currently have -- I will have to bear that risk.
I have a couple more weeks during the diligence period, Dan, but believe I am completed with everything on my end. I do not anticipate needing to complete any additional inspections on the property. I have made arrangements to purchase the property with a bank check and won't be financing the property.