6d (edited) • Problematic Panel Brands
Problematic Electrical Panel Brands
Problematic Electrical Panels Every Multifamily Investor Should Know About
When analyzing a multifamily deal, investors often spend hours reviewing rent rolls, utility bills, and CapEx budgets — yet one of the most overlooked hazards in older buildings is the electrical panel. Certain panel brands and models are well-known in the inspection and insurance industries for failure risks, fire hazards, and extremely poor safety performance.
A problem panel doesn’t just threaten tenant safety — it can also cause insurance denials, higher premiums, failed 4-point inspections, and even become a deal-killer during financing.
Here are the electrical panels every multifamily investor should be aware of before acquiring a property.
1. Federal Pacific Electric (FPE) — Stab-Lok Panels
Risk Level: Extremely High
FPE Stab-Lok panels are the most notorious problematic panels in the U.S. Multiple studies have shown:
Breakers fail to trip at a dangerously high rate
Overheating at the bus bars
Breakers falling out of place
Documented fire hazards
Insurance companies frequently require full replacement, and some will refuse coverage altogether. Any building still running on FPE Stab-Lok panels needs immediate attention and should be factored into CapEx.
Typical replacement cost: $1,500–$4,000 per panel
2. Zinsco / Sylvania Panels
Risk Level: Very High
Zinsco panels (later branded Sylvania) are known for:
Breakers melting to the bus bar
Lost conductivity
Arcing inside the panel
Breakers appearing “off” but still conducting power
These panels often look intact during a walkthrough, but their internal components can be heavily degraded. Many electricians recommend complete replacement over repair.
Typical replacement cost: $1,800–$4,500 per panel
3. Challenger Panels
Risk Level: High
Challenger panels, particularly those made in the 1980s–1990s, have breakers known to:
Overheat internally
Cause melting and discoloration
Fail under moderate load
These panels were involved in multiple recalls. Insurance carriers in Florida frequently flag them during 4-points and multifamily inspections.
Typical replacement cost: $1,500–$3,000 per panel
4. Bulldog / Pushmatic Panels
Risk Level: Moderate–High
Pushmatic panels use a push-button breaker design that:
Often becomes stiff or stuck with age
Has limited replacement parts available
May not reliably trip under overload
While not as notorious as FPE or Zinsco, they are considered obsolete and often fail insurance inspections.
Typical replacement cost: $1,500–$3,500 per panel
5. Older Fuse Panels & Split-Bus Panels
Risk Level: Moderate–High
Fuse boxes and split-bus (1970s era) panels are functionally outdated:
No main breaker
Difficult for tenants to operate
Not designed for modern electrical loads
Often show signs of overheating
Most multifamily lenders and insurers require replacement due to safety standards.
Typical replacement cost: $1,500–$4,000+
Why These Panels Matter for Multifamily Investors
1. Fire Hazard & Tenant Safety
A failed breaker can allow wires to overheat, melt, or ignite. With multiple units under one roof, risk multiplies quickly.
2. Insurance Problems
Many carriers will:
Deny coverage
Raise premiums
Require immediate replacement
Fail a 4-point or ESA (Electrical Safety Assessment)
Replacing panels proactively prevents deal delays and mid-policy cancellations.
3. Financing Issues
Certain lenders, especially on DSCR and bridge loans, require electrical systems to meet modern code. Problem panels can stall underwriting.
4. Unexpected CapEx After Closing
One bad panel is manageable.
Ten panels across ten units? Now you’re looking at $20,000–$40,000+ in unplanned electrical upgrades.
Knowing this upfront protects your NOI.
What Investors Should Do Before Buying
✔ Get a full electrical inspection
This includes checking panel brands, breaker condition, wiring type, grounding, bonding, and service amperage.
✔ Budget for replacements in older buildings
If the property has any of the brands above, price out replacements before finalizing your offer.
✔ Use findings as negotiation leverage
Documented problem panels often justify:
Seller credits
Lower purchase price
Required replacements prior to closing
✔ Maintain updated electrical safety documentation
Helps with insurance underwriting and reduces long-term risk.
Final Thoughts
Electrical panels may not be glamorous, but they have a massive impact on safety, insurability, CapEx planning, and your long-term returns. Understanding which brands are high-risk gives investors a huge advantage
over competitors who only look at cosmetic features.
If you ever need a panel evaluated, a pre-offer walk-through, or photos reviewed, feel free to post inside the group — I’m happy to help.
0
0 comments
Problematic Electrical Panel Brands
skool.com/ask-the-multifamily-inspector-4045
Have a multifamily inspector in your corner—learn to identify hidden issues, verify repairs, and confidently evaluate any multifamily deal.
Powered by