All Forum Posts by: William K.

I have a rental property that has a main house and an ADU on it. The main house is ready for rent, while I'm still working on getting the ADU ready. Right now I have the land partitioned into 3 section. One is for the main house, one is for the ADU, and the last is for me to store my boat.
My question is how can I access my ADU and Boat without having to contact the tenant. Also, is there some prevision I can put in the lease to prevent the tenant from blocking the drive access to the ADU/Boat and from physically messing with my stuff, such as a fee.

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Greenville, South Carolina

Thanks again everyone. The morale of the story is to not bid on 2nd position liens. Be very careful on 1st position too.

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Quote from :

When the judge said the winner of the 2nd foreclosure will “control” the property, he is right....but that just means you’ll Own it...the “senior encumbrance” he mentioned, will still be there against the property. As for the judgments, it’s same as mtgs, if they were recorded After the foreclosing 2nd mtg was, and named and served, they would be wiped out.

@Wayne Brooks would you know if any of the auction proceeds would go towards the 1st after the 2nd was payed off?

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Thanks for the replies everyone. Martin, thank you for your well thought out answer. I have read the book "Bidding to Buy." I feel my only mistake was taking what the Judge said as a sign the coast is all clear and bidding. I had count that property out, and didn't follow what the book said.

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I was at an auction recently, and a property I was interested in had a pretty peppered lien history. Here goes the my best description of the situation:

First, I did a lien search by myself and found it to be very complicated. The property ownership dated back to the 70s and there was a lot of borrowing against it. I decided I would buy a title search. However, my title search request was very late in the process, and I was concerned it would not be done in time. I continued to search on my own. What I found was there were 2 liens on the property. The 1st was for 100k and the 2nd was for 32k. The Foreclosure was on the 2nd. At this point I put the property in the do not bid on category. FYI, the paid title search didn't come in on time.

At the Auction:
When the property came up to be auction a question was put to the judge. "This lien appears to be in second position. How does it fit in with control to the property"? The judge responded, "This does have a senior encumbrance against the property, but the foreclosed lien (2nd) will have control. From there everyone started bidding like there was nothing wrong with it. I did bid, but it went higher than my max bid, which was around 152k.

After the Auction:

When I got out of the auction I checked my phone, and notice my title search was done (lol). In reviewing it I found there were also 3 judgements against the owners that I didn't find. This is how they were listed.

1. owes to a bank 8k

2. owes to a bank 3k

3. foreclosure. the home at the auction

At this point I'm not sure if my bidding was a mistake, or if I should have bid higher, because the following questions came to my mind:

1. Does the winner have to pay for the 2 judgments?

2. Does the winner have to pay for the 1 lien. the loan for 100k

3. Does the proceeds from the auction, the 152k, pay just on the foreclosed lien (2nd), or does it pay 2nd, then the 1st, then the judgement?

This is the end of my story. I would really appreciate any explanations of this situation.

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Can someone tell me the general steps needed to buy an house at auction and have ownership be to my LLC?

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I'm having difficultly finding the phone number for a person whom is selling their home themselves. Is there a general website I could use? All the website that show up through a search want money.

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Quote from @George Azita:

Quote from @William K.:

With the economy finally exiting the covid 19 crisis. This question is popping in my head. When do i raise rent?

In reviewing the average rentals for my area my rents an on the lower side. Logically I should increase rent!

However, I have a moral dilemma. Do I raise the rent for renters whom are behind? If not while they are behind, when?

Every business in the world must be run by immoral people with the way inflation has been increasing.

People who feel guilty about increasing rents are in the wrong business, or should have someone running their business for them.

Failing to increase rents for a single-family home only takes some money from your pocket, but failing to increase rents for multi-unit properties causes landlords to have properties with rents below market value and when those landlords sell their properties they tend to lose tens of thousands of dollars because the value for multi-unit properties depends highly on the annual gross income.

We raise rents for every tenant on the same month every year like clockwork because we are running a business and our good hearts, feelings and worries about other people's problems are not factors we take into consideration. I say every day, "we have our own personal and business problems we have to deal with and our tenants don't worry about us and they don't offer to pay more rent when he have a disaster like when a unit is flooded or when the wind blows a section of the roof off". When we evict tenants or terminate their tenancy we still send a rent increase notice to those tenants along with all the other tenants' notices just in case those tenants fail to move, or in case we change our mind and decide to continue to rent to them.

Raise your rents every year like clockwork so rent increases are an expectation and not exceptional.

I agree with you 100%. I felt this way before I posted the question. Getting free advise never hurts.

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Quote from @Theresa Harris:

If they are behind on rent, what makes you think they will pay the higher rent? Tell them they are struggling to pay the rent as it is, you are not going to renew their lease.

They are month to month. I am going to raise the rent. If they can't get to where they should be we ask them to leave.

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Quote from @Nick Robinson:

@William K.
If they are "renters who are behind" on their rent you should have already evicted them, so this is a non-issue. You are running a business it is very simple you give them a nice, suitable place to live, and they pay you rent. If they cannot live up to their end of the agreement, then they need to go. Cutting deals with tenants and letting them "slide" on rent payments never works out good for anyone. Trust me once you start letting them skip rent and telling them it's okay, they will be less likely to pay your rent.

For tenants you have that are current on their rent and not causing issues it is up to you how much you raise them. If the gap like you said is $100/mo I would not raise them the whole $100 that month. I would make incremental rent increases every year to slowly get them closer to market rent, maybe $25-$50/mo. Knowing if they stay at the property, you will never get them to market rents, which is fine. If you have a good tenant, they are worth their weight in gold, and I do not think you should raise them all the way to market every year. You can do that if you want but you will have a lot more turnover, and you will not make the money that you want to make. Evictions and turnovers should be avoided if possible but someone not paying their rent needs to be removed. No one will care when you cannot make your mortgage payment.

PM said 3 to 5% is industry standard. That is what we are going to do.

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All Forum Posts by: William K.

William K. has started 11 posts and replied 29 times.

Post: Partition part of land for landlord only use that a rental house is on.

Post: Very peppered lien History. What winner has to paid for?

Post: Very peppered lien History. What winner has to paid for?

Post: Very peppered lien History. What winner has to paid for?

Post: Very peppered lien History. What winner has to paid for?

Post: Buy house at auction for LLC

Post: How to contact the ower for a FSBO

Post: When to raise rent on renters whom are behind

Post: When to raise rent on renters whom are behind

Post: When to raise rent on renters whom are behind