I don't like bad surprises like this.So, now I need to know how to assess and mitigate my risk of hazardous materials on a property. 

In both arenas we mitigate risk through detailed planning and great training as well as putting “handcuffs” or limits on ourselves.

@Ali BooneAli makes some good points... and also points out the RISK that is very real in owning property so far away from you that your at the mercy of a third party manager.So how do you mitigate this risk.

@Andrew Syrios and @Jay HinrichsIgnoring the potential of appreciation and emphasizing the 2% would lead to mediocre wealth.Real wealth comes from opportunistically leveraging your assets (income, brains, network, and equity) while mitigating risks.

I hear there is a department or bank officer that is in charge of the Loss Mitigation Manager.

We are a highly conservative group of investors and mitigate/control risk as much as possible.

Be prepared, maintain your properties, address problems as soon as you can, mitigate damages and have adequate liability insurance in place.You need to know the law better than she does.

Plus, risk is mitigated somewhat as the property has other leases at much higher rates with increases.  

., so certainly do what you can to mitigate that risk too. 

Localities participating in the flood insurance program undertake mitigation efforts in order to reduce flood risk, and there is a good bit of conflict between local governments and FEMA over just how effective that mitigation has been.