Why I Walked Away From an Investment Property After Finding Penicillium, Aspergillus, and Stachybotrys
Buying a home is always a mix of excitement and nerves, and that’s especially true when you are purchasing it as an investment property. I recently went under contract on a home that I thought would be perfect for renting out. The layout worked, the numbers made sense, and I could picture it fitting right into my portfolio. But during the 7-day option period, I was reminded how important it is to dig deep before moving forward.
The Inspection That Changed Everything
I scheduled a general inspection right away. This is something I recommend for every buyer because it is your opportunity to have a professional look at the property from top to bottom and point out potential issues.
The inspector flagged “organic growth” under the kitchen sink and on a couple of AC vents. Now, “organic growth” is one of those vague terms that can mean anything from harmless discoloration to something much more serious. For me, that was the signal to bring in a mold specialist right away.
Calling in the Mold Inspector
Within 24 hours, I had a certified mold inspector on site to test the air quality and collect samples from the affected areas. These tests are different from what a general home inspector does. They are designed to identify the exact type of mold present and measure spore counts.
That night, I received the results. The lab report showed the presence of Penicillium/Aspergillus and Stachybotrys (often called black mold). My heart sank. These aren’t just cosmetic problems as both can have serious health effects, especially for people with allergies, asthma, or compromised immune systems.
Understanding the Risks
Penicillium/Aspergillus are common molds that can trigger allergic reactions, sinus problems, and respiratory irritation. In some cases, prolonged exposure can contribute to more chronic issues.
Stachybotrys is different. This type of mold can produce mycotoxins that may lead to more severe health symptoms with long-term exposure. It often grows in areas with consistent moisture problems, like behind walls or under sinks where leaks have gone unnoticed.
For an investment property, this is a double hit because you are looking at the cost of remediation plus the risk of tenants experiencing health issues, and that’s not a situation you want to inherit.
Why I Walked Away
After weighing the risks, I knew the best decision was to terminate the contract. It was an easy call although I had already pictured this home in my rental portfolio, but the reality is, no investment is worth jeopardizing health or taking on costly, hidden repairs that could spiral.
What Buyers Can Learn From This
1. Use your option period to its fullest
This short timeframe is your chance to uncover hidden problems. Schedule inspections early so you have time to review reports and, if necessary, bring in specialists.
2. Don’t dismiss small signs
A little discoloration under a sink or a vent might not seem like a big deal, but it can point to a much larger problem. Address it immediately.
3. Hire the right professionals
General inspectors provide a broad overview, but when something specific comes up, like mold, foundation cracks, or electrical issues, call in a specialist.
4. Keep emotions in check
Falling in love with a property too soon can make it harder to walk away. Remember that inspections are there to protect you.
Mold and Real Estate: A Costly Combination
Mold remediation costs can vary widely depending on how far the contamination has spread. If the mold is confined to a small area and caught early, remediation can be straightforward. But when spores like Penicillium/Aspergillus or Stachybotrys are involved, especially in multiple areas, you could be looking at extensive repairs, removal of materials, and moisture control solutions.
Final Thoughts
Walking away from this deal was a reminder that due diligence is everything. Even in a hot real estate market, it’s never worth rushing through inspections or ignoring red flags. Whether you are buying a home for yourself or as an investment, protecting your health, your finances, and your peace of mind should always come first.
If you are considering buying and have questions about inspections, mold concerns, or how to navigate the option period, I would be happy to share my experience and connect you with trusted professionals. Your home or investment property should be a safe, healthy place for everyone who steps inside.
Remember to head over to the guide page and request a Home Buyer Guide or Healthy Home Checklist.
Maria Hill
CB&A, Realtors
346-574-9752
