Residential Flip next to old dry cleaners?

Question

Hey Folks,

Looking at an otherwise solid REO buy (for flip) on what appears to be a corner lot- come to find out the yard "on the corner" is a parcel owned by the next door neighbor and is "possibly contaminated"... former laundry mat burned down there some 15-20 years ago and between back taxes and possible contamination, it hasn't been touched. On the upside, it makes this property "look" like a well-maintained corner lot, but I'm wondering if you all foresee any issues I need to be aware of, especially on the resale end. Will FHA or other lenders see this as a problem for our potential buyers? (There's never been any formal documentation or study confirming contamination.)

Appreciate the feedback!

Mindy Jensen · Answer

No, I read that it was the property next door. I don't have personal experience with a next door dry cleaner, but I do know that the older ones used nasty chemicals that travel. I'd bet your property is contaminated too.

Mindy Jensen · Answer

@Nichole Catalano-Miller , I'm pretty sure "possibly contaminated" is code for DEFINITELY contaminated. Dry cleaners - especially old ones, are frequently contaminated with PCE - which is a disaster to clean up.

There's probably a reason this property is an REO - the last owner bought it without knowing the difficulties of cleaning up a former dry cleaner location.

I think you'll spend a ton of money if you try to clean it up, and you'll be sitting on this property for a long time.

I would pass on this, it's most likely not the deal you think it is.

However, if I can't sway you, at least get a Phase 1 Environmental Site Assessment before you buy.