Hi all -I'm a teacher in Newark looking to invest in the next year in a multifamily that we can owner-occupy and rent out the remaining units.

Property taxes haven't been paid and the property has remained vacant.

Do I collect the full amount of rent remaining on the contract up front and then return the remaining balance when I re-rent the apt., or do I re-rent the apt. and then charge them for the time it was vacant?

Would someone increasing your costs 3-5%, when we are in a 1.5-2.0% inflation environment, cause you to suspect they were nickling and diming you?  

Could you set aside 50k for that purpose and invest the remaining 100k out of state?

The values will just remain the same the neighborhoods do not turn around for the better they get worse as more renters move in etc etc.

I put in the remaining, and then get a portion of equity for putting together the deals.  

So you could create a new mortgage for each new deal or you could open what would amount to a HELOC-though I don't know how you would go about that with funds from a private lender (your friend).For option two you might consider creating a LLC where your friend maintains ownership and you just act as an officer in the company-that way all tax consequences remain with the LLC and are ultimately passed through to the owner.Definitely get with an attorney/accountant to discuss these options.

Having roughly twelve years remaining on a fifteen year mortgage, we decided to turn this property into a rental.

I also process them in the order I receive them and refund the remaining applicants if a solid tenant found.