Buying a tenant occupied property with troubled past

[Daniel Toy]

I found a multi family property (out of town) that appears to present an enticing deal. Its been on MLS for a few months, which to me is always suspect if it is indeed a good deal. I spoke with the listing agent to confirm some data, and all of my numbers check out but I kept wondering why no one else has scooped up this property. Upon further research, I uncovered two things and assume this could be why...

1. County records show ~$2k in back taxes (which doesn't seem like a huge deal, right?)

2. The US justice department has filed a sexual harassment lawsuit against the owner/landlord, alleging that at least 2 female tenants in past were subjected to "egregious sexual harassment and retaliation". Basically asked for sexual favors in place of rent payment, and also entered a property to harass a tenant while she was asleep, among others complaints that spanned several years. The suit was filed in Dec 2017 and I could only find a few articles so I don't know if it's still open or pending, but I'm thinking this could be the reason the properties are listed for sale? 

Any suggestions on how to approach this deal? Or is this a ticking time bomb that I should scratch off my list?

[John Warren]

@Daniel Toy how is the area where the property is located? Is it a solid area of town, or is it a tougher/low income type area? I wouldn't personally worry about back taxes or how the previous owner was acting. Those are all issues that are very simply resolved. Focus more on what kind of tenants this building could attract, and how easy it would be for you or a property manager to manage going forward.