Bought a multi-family investment property

5 Replies

I am in the process of buying a 3 family home in a college town that I am extremely familiar with. I have done more homework than you can imagine, including reviewing 100 years worth of documents through an OPRA request (which I suggest anyone does who buys investment property). My issue is that I want to live in one of the Units that is currently rented out for 11 more months. The current tenants have known for over 10 months that the house is on the market as buyers have visited the house frequently. I thought I read somewhere about NJ tenant law where if the multi-family house is becoming owner occupied then the tenant has 30 days to leave the Unit. I find it hard to believe I wouldn't be able to move into my own home. Anyway, in case I cannot, I was thinking of offering the tenants up to $2,000 and give them 60 days to move. I think this is fair. As some color the tenants are illegal immigrants so I would think they don't want to cause trouble.

@Anne Lewis

First off as a Landlord your last sentence could possibly land you in serious hot water and a lawsuit from either the Tenants,The NJ real estate board (whether you are a Realtor or not), The State of NJ and possible the Federal Govt. (I highly recommend you modify it or remove it entirely)

Anyone offering advice based on your post could also land them in trouble based on your last sentence.

FYI for everyone else. OPRA (Open Public Records Act)  is a NJ law, and may not be available in all states.

I'm no expert on NJ law, but I'd assume that you'd need to honor the tenant's lease term if they have a signed lease with the current property owner. New Jersey is known to be a Tenant-Friendly state so it is hard to think they would allow you to override their lease because you want to occupy their unit. Offering a buy-out to the tenants should go a long way in convincing them to move; however, even if there is no lease in place, I'd recommend having a conversation with an attorney before you buy the property to understand what options are available to you with that tenant. 

I had this happen with the property I recently closed on. The tenants had another 4 months on their lease so I extended close as long as possible and asked the seller to serve them notice to move 60 days before their lease expired. Luckily they agreed and moved out earlier than expected so I didn't need to offer them cash for keys. That would have been my next step. 

I did consult with my lawyer on all of this so I knew I was on proper legal footing before making any moves. I suggest you do the same. NJ is very tenant friendly. 

Hey , I am totally agree with you that anyone need to have conversation with an attorney before buying the property. Actually, I was just searching for property listings and found different situations. I just checked yourokcpropertymanager.com and I think this can fulfill my requirements. Do you think this is good or if you can suggest a better idea , that would be great.