HUD Lead Based Paint Inspection Contingency

[Kurt R.]

We're under contract for our first BRRRR investment. It's a HUD foreclosure we got for $78k. ARV is probably $150k-$160k.

However, there are a few big question marks we're now working to resolve.  One is an underground oil tank that could be a deal breaker if it's leaking.  We're having a soil sample test done next week.  If it comes back bad, we'll likely cut our loss and walk from this.

My question is around the lead based paint inspection contingency. It's an older home and there's a good chance there is lead based paint. In the HUD LBP addendum, there's an inspection contingency that reads:

The Purchaser has a contingency period that expires fifteen (15) calendar days from the date the contract is accepted by HUD to conduct at the Purchaser's expense, an independent lead-based paint inspection visual assessment for deteriorated paint or risk assessment.  The Purchaser may withdraw from the contract by providing written notice of withdrawal on or before the contingency expiration date (as evidenced by the postmark on the Purchaser's notice of withdrawal).  The Purchaser will be entitled to a refund of earnest money only if the Purchaser obtains an independent lead-based paint inspection or risk assessment performed by a Certified Lead-Based Paint Inspector or Risk Assessor, and the Purchaser provides HUD with a copy of the inspection report.

This seems to me like if we got this LBP inspection done and there is LBP in the home, we can at least walk and get our $1k earnest money deposit back.  

We're not as concerned about the paint as we are the oil tank.  But if we can use this LBP contingency as an "out" to save our deposit, we will.  Does anyone have experience with this?  Can anyone confirm my thinking?