Would you walk away from a property with a bad past?

[Kim H.]

The property I am currently doing due diligence on had a gas explosion a year ago. The particular structure involved is no longer on the property and the explosion was caused by a company digging in a nearby location. I have copies of inspections done on the remaining structures after the explosion which show them to be sound, except one which needs $15k to repair the pier and beam foundation. I have my own inspections scheduled two days from now. There is an ongoing lawsuit between a family member of the tenant who passed away and the company, not involving the property owner or the property. I have already determined that I like the numbers on this property and the location is excellent. It's just what I am looking for as my first investment, if it weren't for this issue. Anyone else ever continue with a property that had a tragic past? What was the outcome?

[Joe Fairless]

@Kim H. based on what you described, the gas explosion is irrelevant since it does not involve your property. So I would focus more on why the property is still available and ask the seller why he/she is selling. I'd also have a top-notch inspector review the property after you get it under contract.