Some people fund raise from many different sources too.  

They didn't even raise it the 1.2% to 3.6% (varies by year) allowed by rent control. 

Penalizing a landlord for raising rent is 100% a form of rent control. 

If he was raising institutional money he would get destroyed by advisors if he took that approach. 

It is also far easier and more cost effective to scale by selling membership interest of an LLC or simply purchasing your real estate in LLC's where you raise money from friend's and family to serve as LP investors.   

We just turned a unit and raised it about $200 to match the market.

And often the improvements to be made are raising rents to market.

If i purchased the property and raised the section 8 tenant rents to the FMR, does this have a major effect to the tenant?

The second item and this is more a concern I wanted to raise is your objective of reaching 100 doors in the next 3-4 years.

I'm born and raised here and have been investing in NNJ since 2018.