Rodent problem in potential multifamily investment

[Tracy Munger]

Hi BP!

We're new at this looking for our first investment property. We are primarily looking at multifamily units. We live in a pretty rural area about 10-15 minutes between 2 different markets in central Iowa. One market is more desirable than the other, but in both cases the opportunities for multifamilies are limited.

We went out this weekend and toured a handful of properties and are interested in one of them. The building itself was built in 1900 (which is common for multifamily units in this area), and is a 5 unit. The building itself is in good condition, and the units are large and mostly updated and in very nice condition.

Now for the downside. We noticed right away in the basement there is a mouse problem, as well as a possible roach problem. In one of the upstairs apartments we found an unused top level (finished attic) room that clearly had mice living there - which opens into the unit and the tenant had mouse traps at the door that led there.

We didn't see evidence of mice in any of the other units, however in one of the units the tenant was out when we came, was very much a mess with old food, garbage, old cans, and garbage piled up in every room. I know this is contributing to the problem.

I know that in dealing with mice, that once they are in, it can be very difficult to get them out and keep them out. They do quite a bit of damage over time if left unchecked.

I guess my question is, should we even consider this property or will it be too much of a headache over time. I know that even if we bring in exterminators, etc that it will be difficult to keep them out. We haven't spoken to the tenants to see if they are concerned about the infestation or not, but I don't want it to be one of those escalating problems.

Is there a way to get around this or use this as leverage for lower price or should we just skip it?

Sorry for the long post :)