And yet another mold question

[Tyrone Perry]

Good morning BP Family! I'm currently under contract for a duplex that has a slight mold issue under one of the baths & possibly in the attic (hvac drip), which may have dripped to the flooring underneath in a nearby hall. Should I back out? This is so new to me. The duplex is currently occupied on both sides. Property is in Illinois, however I live in Virginia. I'm concerned with current tenants coming after me, once the remediation is completed. Current owners have ignored a ton of maintenance issues, to include the mold. I've asked for $20k off to fix the problems. Is this something concerning? Thank you in advance!

[Patricia Steiner]

If I understand the facts, there's a lot more here than mold: you are an out-of-state investor, under contract for a property that has a history of neglect and you're concerned about tenant liability - and you're new to this.  

Are you waiting for locust to appear?  This isn't the right starting point for you - nor would it be for many investors.  When an owner has failed to maintain a property to the extent that this one has, you'll be amazed at the "discoveries" that will await you as you repair what you can see.  That slight mold issue?  It might not be so slight..."it may have dripped under the floor?"  Those "may have's" will bite. It's challenging enough when you can be on premises, using your own vetted contractors, and making real progress.  But when you're out of state, you lose control and lost of control means spending more money and time getting to the end result.

Tenants.  In Illinois, the landlord has 14 days to make repairs. Rent can be withheld, leases broken, and even legal action taken if not completed.  If a property has mold in it, so much for 14 days...the law states the property must be safe.  I think your concern is well-founded. And, unless you're buying the property vacant, how do you intend to make the repairs while tenant occupied?

So, here it goes...my recommendation:  BOLT.  NOW.  The owner is selling the property, deferred maintenance, mold, tenants who would have valid claims, and more. It doesn't sound like a good cruise to me.