Portfolio and next move analysis

[Michael H.]

I’m looking for some assistance analyzing my next moves.

I self-manage 5 duplexes and they cash flow pretty well. I have remodeled 4 units. Low maintenance, low vacancy, few so-called problems. Half have of the tenants have lived at the property more than 7 years and one 25+ years.

However, about half of them are about a $100 under current rents.

Being that the tenants have lived there a while, some of the units do need upgraded to justify a rate increase. Not to mention they’re not as valuable on the market or if I want to refinance in their current condition.

Do move theses tenants out and spend the $10,000-$15,000 each to remodel and clean up for an additional $100-$150 a month?

My main goal is to obtain more multi family and then hire a management company for what I need. I have several different roads I could journey down.

I’ve flipped four houses as well.

I’d really like to talk to an experienced investor about what some good moves are for me moving forward.

Anyone interested?

TIA. I appreciate your input.

[Drew Sygit]

@Michael H. Don't assume you have to upgrade to raise rents.

Contact each tenant and tell them what market rents are and ask them what they think a fair increase would be. Some will their out an acceptable number, others will say $0. Either way, push for a reasonable amount and if they don't want to pay it, they can move. Then renovate only those units and rent at market.