He told me that there is a new law that may prevent them from doing this refinance because it is under 5 units.

I just did not want to violate any kind of law.

I have roughly 5 years of formal work experience with different aspects of default real estate, although most of it is with paralegal style work, as I was at a default-based law firm and now am working at a bank in different servicing aspects of foreclosure (residential).Investing in default properties has always interested me, so I may begin there, but I'm here at BP to learn as much as possible to make my first deal a successful one.

The tax sale would wipe out any lease (I presume - depends on state law).

the 2% rule.... it is not 2% rule of law, it is 2% rule of thumb.

It will be local laws and regulations.

Bob never has the knowledge that agent z was an owner in the LLC and b/c of agent z's advice to take the offer bob took under market value for his property) A scenario like this is totally against license law.

@Kevin Lopes I'm not Atlanta (I'm in PA), but my understanding of PA law is that if there is an existing lease and I purchase the building, I have to honor the lease.

Just be careful about fair housing laws, as this strategy gets tricky if you ever deny renters to try and hold out for a buyer.

Lease-options are tricky in TX due to the laws of executory contracts that are longer than 180 days.