Moldy Flip: Newbie's 3rd Flip (advice desperately needed)

[Alan A.]

Hello BP,

I'm quite new to this, like the majority of others posting here, and would very much appreciate any advice or thoughts from you seasoned investors.

I am getting ready to pull the trigger on my 3rd flip.
First, the numbers:
1st floor unit (2 story building) >1000 sqft
Purchase: 28k
ARV: 110k
Estimated Rehab: 30-40k??
Rental (option): ~$1,100/month

I was a little surprised by the low asking price, and consequentially, am a little hesitant. It is not a large unit (under 1000 sqft) and has black mold throughout, in every room.

I am anticipating needing to have full mold remediation and replace all the drywall in the entire condo, including the ceiling. I've done a pretty extensive rehab before, but I've never done anything this large and certainly nothing with mold. I've called a few remediation companies and have estimated a worst-case scenario of 12k for remediation (before replacing the drywall)

My questions are as follows:
1) One remediation contractor mentioned that in some cases, the condo association might be liable and could file a claim with their insurance for the remediation expenses. He also mentioned that the drywall is actually owned by the association, not the homeowner, which was news to me. Is there any truth to this, has anyone had luck with this happening?

2) If the mold was caused by a leak, and if the leak resides between the 1st and 2nd unit, would the association also be liable here? I understand that if the source of the leak is in the above unit, that owner would be liable. Could I potentially run into problems relying on others to correct this problem, if it exists?

3) Will having to disclose the prior mold situation scare away potential buyers or hurt me on the resale?

Thank you in advance for taking the time out of your days to share your experience.