I would not even consider a contaminated property unless you know exactly what you are doing and what you are getting involved with. In today's society folks are going back and looking for deep pockets to sue and once you've owned contaminated property, you will carry that liability for life (regardless if you sell down the road). Further, most lenders will shy away from the risk.
No matter what invest in a quality Phase 1, Phase 2 and if necessary Phase 3 environmental report before you close escrow. In my market we pay between $2,500 to $3,000 for phase 1, pahse 2 can be double that and phase 3 all depends on what is required.
Jan 5, 2009