New and looking to buy two rental houses

[Curtis Bowery]

New investor here in need of advice... I came across a deal on two rental homes that each value for ~$145k and the asking price is $110k on each. The builder completed the homes in '08 and rented them out instead of selling when the market turned south. Both have been lived in by the same renters since new. There rent is currently $650 because it has not gone up in a decade. The homes are ~1230 sq ft, 3 bed 2 bath with a carport. I live in a rural area outside Chattanooga, TN. The current owner is looking to free up his mortgage on them and focus on building other homes which is why he is selling below market value. 

My questions is... how should I go about raising the rent without losing quality tenants? Thanks in advance for any help!

[Jason Silvenis]

@Curtis Bowery

I just had a similar situation at a property I am looking at. I asked the tenant what she wished would change about the property. She listed some minor repairs and some tree removal. I said my plan was to raise the rent on the location to match the market but that one purpose would be to make the changes she requested happen within the year. The increase will be about 25% but she was so excited to hear about my plans. If the deal goes through she wants to stay for the rest of her life.