Abandoned industrial properties are often seen as eyesores by locals. But those with a vision, see them as opportunities and, depending on the zoning, abandoned industrial properties can become a very profitable opportunity.
Typically, an abandoned property is bought “as is” and this can mean that it can become more of a loss than a profit. While abandoned industrial properties in Massachusetts can be purchased at a discount, there are factors that investors should consider.
Electrical. Electrical wiring must be up to code if you are to use the building. This can be a large expense as some buildings may require new wiring throughout.
Plumbing. Another common factor that investors should consider is that many of these abandoned buildings have older plumbing which could have rusted or broken. Sometimes, the copper plumbing itself is stolen from the properties which can add up to an expensive bill to replace.
Structural deterioration. The older the building, the higher the chance of structural deterioration. Be sure to have the building thoroughly inspected including the walls, ceiling and flooring for any rot or mold that could have come from water damage. Assess the cost of these damages before you make a purchase.
Asbestos. Asbestos has been banned for use since 1977 but it does still exist in many homes and commercial properties throughout the country. Asbestos can cause a form of lung cancer and it should be removed before anyone is allowed entry. Many older commercial buildings might still have asbestos in the walls and ceilings. Removing it can be a large expense. Factor asbestos removal into your equation before purchasing a property.
Back taxes. In some cases, a building may be abandoned due to unpaid property taxes. Back taxes become the responsibility of the new owner. Contact the local tax assessor before purchasing any abandoned industrial property.
Condemnation. When properties are condemned, potential investors should contact the local planning commission to find out why. It could be something minor that needs repaired to bring the property up to code, or it could be something more involved that could become expensive.
If you are considering owning abandoned industrial property in Massachusetts, contact Sovereign Realty Advisors and speak to a Massachusetts property investment expert today.
If you enjoyed this article, please feel free to share it on your favorite social media sites.