All Forum Posts by: Johnathan Blassingame

My mentor is liquidating his portfolio because he is moving out of state and gave me the opportunity to purchase any building(s) from a list of properties that he is trying to sell. After reviewing the properties on his list, i identified four multi family buildings that I want to buy. The buildings have a total of 12 units and all the units are currently rented at or around the local market value. It is composed of one duplex, 2 triplexes, and one quadplex. the total sale price for all four is $1.2 million dollars.

This is the first time that I am seeking financing of this magnitude and first time that I am in need of a way to creative finance a deal. I'm not sure of the best way to finance the deal since I currently don't have the money for the down payment of that sales price. I have been debating pulling equity from other properties that I currently own for the down payment. Or looking into a hard money loan for the down payment and a DSCR loan for the properties themselves.

The seller is not interested in seller financing since he plans to roll the proceeds of the sale into another purchase in his new area.

Not sure of the best strategy to pursue.

I recently inherited a triplex with section 8 tenants in Trenton, NJ (Mercer County). Unit 1 has a tenant paying $1,058 / month (state pays $1,000, tenant pays $58). His lease is set to expire on 10/29/22 and he gave his 60-day notice within the appropriate timeframe.

However, the tenant emailed me today asking if he could rescind his 60-day notice and stay in the unit until he can find another apartment. He cc’ed his section 8 representative who replied that I would need to confirm that it is okay for him to stay in the unit in order for DCA to continue paying their portion of his rent.

He has been a good tenant for the duration of his tenure and I don’t mind if he stays. I’m very new to managing property, so I’m not sure what my next steps should be. I want to confirm that the tenant can stay, but I’m not sure what to do besides responding to the email. Should present him with a new lease? Should I allow him to continue month to month under the terms of the old lease (in place when I inherited the property)? 

Any feedback is appreciated.

thanks, 

John