Purchasing in a Environmentally Contaminated Subdivision

[Sandra K Shirah]

I'm on the fence about this one...

The REO property I'm interested in is in a subdivision that the ground water is partially contaminated by THC from a manufacturing plant. The geologist and toxicologist hired by the plant for ground and air sampling has assured me that the property is not in the contaminated area (I have these contacts because my current residence a block over has vapors coming in through the foundation and remediation in progress). As a broker, I know the contamination will significantly reduce the value of homes in the neighborhood (zero), and I imagine the company will eventually buy the homes actually contaminated...but if I could purchase the property in question at a large discount and rent (w/proper disclosures) at even half the average rental of the neighborhood ($950-$1100)... The broker in me and the investor in me is at war... any thoughts?