New investor with 25 year tenant

[Ryan O'Hara]

Hello! My wife and I are currently in the process of closing on our first duplex in Milwaukee, WI. We are planning on house hacking, and the lower unit currently has a tenant who has been in the place for the last 25 years. Her current rent is $975 MTM for a 3 bedroom 1 bath place. She has taken incredible care for the place considering how long she has been there. However, the market rent is right around $1,500 for the place with the location and size of the unit. We have been trying to figure out the plan to make the numbers work while not making her want to leave. Our current idea is meeting in the middle at $1250-1,300. That said, what is advice do you have for increasing rent while keeping the tenant happy/understanding?

[Philip Williams]

Call me in the minority here but you don't have to buy this particular deal. I found a great 8 plex with all old tenants like this, some had health issues all were on fixed incomes. I couldn't make the numbers work without kicking them out so I simply didn't buy it. Another 8 unit I bought had 1 lady who has been there since before I was born, I could make the numbers work without getting her rent to market so that's what I did. All this it's a business is well and good but if we are supposed to be the best of the best I'm sure we can find a way to build a portfolio without kicking seniors on fixed incomes out right??