BLACK MOLD in Houston, TX Home?! Deal or no Deal?

[Dee W.]

I drove by a vacant home and gave the owner a call. She told me that the home was an owner financed deal so she is not truly the owner although her name is on HCAD as the owner.

She expressed to me that the home had BLACK MOLD since the original owner did not inform her that there was a slow leak in the home.
She also said because of the leak there was water damage to the floor. She was upset since she invested money into the home; about $30,000 worth.

She called a vendor to see how much it would cost her pertaining to the water damage. She was quoted $70,000.

She moved out July 2012 and hasn't been back.

What do you think of the "Black Mold" issue and the cost of water damage?

The home is :

-Ranch Style
-1786 sqft
-Year: 1978
-3b/2bth
-Has ARV of $90,000
-Rents fron $1,025-$1,200
Nice area in Northwest Houston, TX

Your suggestions are appreciated.