First deal, 4plex foreclosure, need advice

[Brian Lounsbury]

I'm new to RE investing, looking at a 4plex foreclosure, and in need of advice! The numbers tell me this is a deal but I'm not sure I've done enough due diligence and there a few questions that have me reluctant.

1. How do I find out why the property was foreclosed on? I found mortgage, deed, warranty, etc on the county assessors site but they want a $50 account setup fee plus a per page cost so I want to make sure those documents are worth it first.

2. Does the foreclosure result in getting rid of all tenants? The property is currently 100% vacant, but the area is full of similar 4plexes with low vacancy rate - according to the PM who manages 5 of the nearby buildings they currently have only 1 vacant unit and have many long term tenants.

3. How do I get past years' financials if this is a foreclosed property?

Any help is much appreciated! This site has been an invaluable resource so far but I couldn't find these questions answered anywhere else. Thank you in advance!

[Wayne Brooks]

1) it doesn't matter, the owner didn't pay the mortgage.

2). It depends on the bank

3) you don't.

You need to estimate repairs to get it ready, the market rents, and what type of tenants you'll get in that area, and whether any utilities are typically paid by the landlords in that area, and if the electric, water, sewer are even separately metered.