Property Backs up to A Water Treatment Plant

[Justin Krebs]

I am currently looking into purchasing a duplex that backs up to a water treatment facility. The numbers are good, the building is in good shape and it has at least 1 unit rented out with a long term tenant (have not verified the rental amount). I am just hesitant because I do not know what the impact of the water treatment facility is on this investment. Any advice would be greatly appreciated.

[Clint Shelley]

Unless it's a killer deal I would pass. Some tenants will not even look at it. Also, it may not have a smell today, then a new development comes online and the plant exceeds capacity and you get a smell. I know because this happen to a neighborhood my first rental was in. Bad smell for 2 years until they got a new plant online in a new location. Couldn't smell it at my house but coming into the development, you could. Not worth the risk if you ask me.

Clint