Investors beware.  Not only do you have to be careful of bad electrical wiring, leaky roofs and cracks in the foundation, but you should also check for dangerous and illegal uses of your potential property.  Don't be fooled into thinking that only houses in rougher, low-income areas house drug operations.  Some of the country's wealthiest zip codes are home marijuana Grow ops, and clandestine meth labs continue to increase in cities of all sizes across the U.S.  

The Drug Enforcement Administration reported seizing roughly 7,000 methamphetamine labs last year.

There are hundreds of horror stories about police uncovering rental properties producing large amounts of drugs- much to the property owners' surprise.  Small meth labs have also been found in homes, apartments, hotel rooms and even abandoned school buses.  The repercussions to the owners can be both financially and emotionally devastating.  It generally costs from $2000 to $10,000 to clean up a meth lab depending on its size.  Grow ops cause an immense amount of mold and permanent structural damage, not to mention contamination.  Meth labs use dangerous chemicals that cause explosions, fires and toxic vapors that permeate the building walls and flooring.  Social and health ramifications include danger to children playing in nearby areas where meth lab chemicals and paraphernalia are dumped.  Grow ops also increase risk of violent crime as rival gangs and criminals break into drug houses and forcefully steal crops.  

The following are guidelines you can follow to avoid becoming the owner of a drug impacted property:

Ask you Realtor to pull a history on the property to see if it has changed hands frequently and if it was used as a rental.   Ask if a meth lab disclosure clause is part of the sale contract.  In Colorado, under a new rule, every seller of a house, condo, apartment building or hotel must certify that the property has never been used to manufacture methamphetamine or, if it has, that it has been cleaned up according to state standards.  Real estate property disclosure rules have not been adopted in every state, check with your Realtor.

Meth labs and Grow ops operate in the city, rural areas, farms and warehouses.  Look for suspicious dump sites along roadsides, in yards and around buildings.  For meth labs you may see an unusual amount of chemicals and solvents such as: acetone, brake cleaner, toluene, rubbing alcohol, drain opener, paint thinner and gasoline additives.  Also, look for an excess of cold and sinus medications containing ephedrine or pseudoephedrine.

 Telltale signs of Grow ops include mold and moisture staining, unsafe wiring and unusual pile of garbage containing fertilizer containers, pots and soil left behind.  Also, look closely to see if the water tank or chimney has been re-routed or if windows have been replaced with vents.  Sometimes the problems have been hidden with fresh tough-up paint around the baseboards and in the basement newly added drywall may cover mold and makeshift grow rooms.

Make sure that you screen your tenants well.  Run both a credit and background check.  Eliminate the bad apples early in the process.  Have a rental agreement that outlines who is living in or using the premises.

Inspect your property on a regular basis.  Speak to the neighbors and take note of any suspicious activity, such as unusual traffic in and out of the property at odd hours.  For Grow ops, look out for exposed wiring, high-intensity lamps, rewiring and bypass to electric supply, excessive moisture, window that have been covered with heavy curtains and are moist with condensation.  You may also notice frost build-up on the eves and vents during winter.  A strong cat urine smell, ether, ammonia, vinegar, or solvent smells may exist.

Observe your tenant's behavior.  Suspicious signs include very high strung behavior such as talking very fast, wants you in and out of the property, or they won't let you in at all.

If you suspect illegal activity call local law enforcement and a good lawyer......You're going to need one!