Investing and renovating unit sold by heavy chainsmokers

[Colin Simon]

I'm currently looking at a 2bed, 1ba condo listed at $250k -- comps that are B-grade have sold for $320k in May 2019, and A- grade units in the complex seem to rent for around $1800/month. It's in a good part of town, it is right next door to one of the most popular outdoor brewery/coffee shop spots in town. In non-COVID times, that place is always packed and seems to bridge generational gaps.

The reason is, the unit is/was occupied by two people who have smoked heavily. Really heavily. At the showing, pretty much every surface in the condo was yellow. Walls, carpet, appliances, light fixtures, light switches and coverplates, cabinets...everything. We wore masks because of COVID, and when we went outside could still smell cigarettes/nicotine through the mask. It was gross.

In addition, the drywall and popcorn ceilings have both tested positive for asbestos!!

My investment partner and I have obtained respirators. We figure if we get Tyvek suits, scrape the popcorn, remove the carpet, paint the walls, replace the appliances(they are already shot) and all the fixtures, throw in new countertops, paint cabinets...etc, it'd be great.

We think that it won't be that bad since the place is 790 sq ft. It'd be dirty work, but seems like a great rehab return for mostly cosmetic improvements.

Our fear is, the owners or the listing agent got a bid from an outside contractor. They estimated $98,000 for the job and wrote this, basically saying that it's impossible to fix without also replacing the drywall and insulation, and that chemicals and paint would not be enough:

• "The odors and residue from the smoking are very apparent and appear to have permeated all areas of the Residence to such a level that these odors and residue, that is oil based, cannot beremoved by means of scrubbing with a detergent solution, application of a deodorizing solution, and application of a stain blocking type paint. 
• It is [REDACTED]'s position that the damage and permeation of all surfaces from the smoke odors and residue are so extensive that the only way to resolve these conditions is to remove and dispose of the floor coverings, interior drywall,insulation, wall coverings, and appliances. After removal of the drywall and floor coverings the wood structure and framing would be treated with a surface applied water-based encapsulating sealer to help prevent the release of any odors that have penetrated into the wood components. This process is the same one used by remediation contractors when a residence or structure experience smoke damage from a fire andthe wood components are not damaged to the extent they require removal and replacement.
• It is also [REDACTED]’s experience that the smoke odors and residue will permeate into the insulation layer of the appliances. There is no way to clean or otherwise deodorize this insulation,therefore, the only way this can be addressed is disposal and replacement of the appliances. It should also be noted that the Home Inspectors Report indicated that the existing appliances have reached the end of their useful life"

So -- has anyone dealt with this before? Does cigarette smoke really go through the walls? If we just applied sodium-whatever-it-is-chemical and painted everything, would you still smell smoke everywhere?