Good Deal but tenant has paid rent i 4-5 months

[Dhondup Chime]

Hello everyone, I am a 26 years old aspiring REI. I found this really good multi-family in Greenville, Jersey City for 750k but the owner is willing to give me 50k in credit bringing down to 700k ( purchase price). I got approved for pre-qualified for about 750K+ in the loan based on my credit.

I was willing to pay 140k (20%) in downpayment and my mortgage and interest and mortgage comes to $3,200 (estimate) monthly without PMI.

But here's the thing.

The 2nd floor is paying about $2200 ( section 8 ), the government pays 1600 and the tenant pays 600.

The first floor only pays $1400 for the first and the basement ( has two rooms ) but the tenant hasn't paid in the past 4-5 months and not willing to leave.

My concern is if I acquire the house, I do not want to have a tenant that is not paying rent and the court date might take up to 6-7 months according to my attorney.

Do you think I should go forward with this deal or no ? what is your thought on this? Please help. Thank you.


EDIT - GOOD DEAL BUT 1ST FLOOR TENANT HASN'T PAID RENT IN 4-5 MONTHS 

[Mark F.]

Originally posted by @Dhondup Chime:

Hello everyone, I am a 26 years old aspiring REI. I found this really good multi-family in Greenville, Jersey City for 750k but the owner is willing to give me 50k in credit bringing down to 700k ( purchase price). I got approved for pre-qualified for about 750K+ in the loan based on my credit.

I was willing to pay 140k (20%) in downpayment and my mortgage and interest and mortgage comes to $3,200 (estimate) monthly without PMI.

But here's the thing.

The 2nd floor is paying about $2200 ( section 8 ), the government pays 1600 and the tenant pays 600.

The first floor only pays $1400 for the first and the basement ( has two rooms ) but the tenant hasn't paid in the past 4-5 months and not willing to leave.

My concern is if I acquire the house, I do not want to have a tenant that is not paying rent and the court date might take up to 6-7 months according to my attorney.

Do you think I should go forward with this deal or no ? what is your thought on this? Please help. Thank you.


EDIT - GOOD DEAL BUT 1ST FLOOR TENANT HASN'T PAID RENT IN 4-5 MONTHS 

NO. You're a newer investor and it doesn't sound like you're familiar with NJ tenant laws. They are a bit more in depth than your average state. As a new investor you are at serious risk of being taken advantage of and with the eviction ban its a recipe for disaster. 

Low rents wouldn't bother me as long as you can raise them. I'm forgetting if JC has rent control. And If you don't know them off the top of your head then again I strongly advise to pass.