End of subsidized housing, now to raise the rent

[Jennifer Rysdam]

Hi all. This is my first post. I'm thinking of purchasing an 8-plex. Up until last November it was under subsidized financing and subsidized rent. The loan was paid off in November, so he gave them notice that rent was going back to market rent and if they still needing housing assistance that they would have to apply to the state and get it through themselves.

He's been trying to sell this place for a year and dreads dealing with the rent situation so much that he just wants to get out of it. Since the low income housing financing ended in November, can we raise the rent to market or do we have to wait until leases are up? I'm assuming since the state isn't paying the other portion that the amount in the contract is null and void. 

Also, I'm wanting to create an entity for the place. LLC or SCorp??

Thanks for any advice.

Jennifer