All Forum Posts by: Shaine Cobb

Thanks Zac P. I think that you're probably right, and if they are paying tenants I'm in no hurry to get rid of them. Just need to make sure they're paying the right person - me.

Ok folks, I bought a quad at foreclosure auction that currently has tenants in 3 of the 4 units. What do I do with the tenants? Does the change in ownership affect the lease signed with previous owner? Should I post and/or mail notification of new ownership (send your checks to me)? Do I evict at end of lease or if tenant can't produce a lease? Just spitballing here and am interested to hear what everyone has to say. Some facts:

- I am in South Carolina
- I have read the SC Landlord Tenant Act to no avail
- I have searched the forums, also to no avail
- My "mentor" has no experience in the situation
- Spoke with foreclosure attorney - said to evict them and told me which magistrate to go see

I look forward to your replies.

Shaine

Sean Brennan,

Thanks. I hope that it is going to be as well.

@Brandon C. I couldn't agree more. I have been looking at some options. The balance is due in 20 days and I didn't think that I would be able to secure a conventional mortgage in that short time. I could always go to HML, but hate to pay the rates when I don't have to. I am looking for a local bank or credit union that will do a cash out refi to pull a little money out for down payments, because I definitely want to pick up some more properties. Thanks for the advice and the insight.

@ScottW. Sorry for the lack of info on the rehab costs. Since it was at the foreclosure auction, I haven't seen the inside of it at all. Keeping my fingers crossed...it is habitable (still has tenants) and did not have any pending code violations. We'll see after I get into it.

Hello BP friends and family,

For the last week or so I have been working on a deal that was going to the foreclosure auction. I have attempted to heed all of the advice given here and also from others outside the forum. After contacting the bank's attorney and doing my due diligence at the courthouse, I did a few drive-bys of the property, and all seemed well.

So this morning I pulled the trigger on a fourplex (quad) in my town. Each unit is 2/1. It is in reasonable shape, in a low to mid income area. It appears to be at least 75% inhabited, but that is about all the information I can gather at the time.

Similar units (there are several buildings together in the complex) rent for $500 - $600 with Section 8 paying at $525 for most 2br units.

The total purchase price was $41k of which I put down $2050.00 this morning, with the balance due in 20 days. I have the cash to pay it off, but wanted to start an LLC and take title in it's name instead of my own. After the LLC is formed (around $150 and 1 day's time here) then I will pay the remainder. Back taxes are owed and should work out to ~ $3800 total, city and county.

My intention is to keep the property long term. I plan to use a PM after I get all of the issues sorted out. I evaluated the deal looking at comps in the area (hard to come by), the 50% rule, the 2% rule, and common sense based on my personal situation, knowledge, and availability.

I would like to know what you think. Good, bad, whatever. I appreciate input, advice, constructive criticism, ideas, etc. What say you BP?

Thanks for the heads-up. Just downloaded it.

@BrandonTurner, thanks for the welcome. I'm glad to be here and will work on posting a photo. I downloaded your e-book (7 years) and devoured it last night. Congratulations on your success and thanks for all your time and effort.

Shaine

@ J. Scott - Wow! You are the reason that I ended up here (Bigger Pockets) to begin with. I have been following you guys and your work for awhile. I remember being so impressed with how open and well presented your info was on the blog. You gave me a real belief that I might be able to make a career out of this. It gives me real pleasure to be able to write THANK YOU to you personally. Keep it up!

Joel, thanks for the heads-up. I will be sure to look up some of the members you've mentioned. A couple of names, yours included, have quickly become familiar to me. Thanks again.

Shaine