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Updated over 5 years ago,
Can I increase rent from $100/mo to $300/mo in Georgia?
Hello friends at Bigger Pockets. I am buying 18 mobile home lots in trailer park (mobile home park). It's not the traditional mobile home park where the owner owns all the lots. In this case, someone developed a mobile hope park and sold the lots to individual people. Throughout the years this guy acquired 18 lots and about 9 mobile homes 4 of which he has owner financed to tenants. Most lots are rented at $100/mo. In nearby parks lots are rented at $250-$300/mo. Tenants pay all utilities. Owner pays property taxes for lots.
The purchase price at this moment is $285K. At this price my cash on cash is about $11%. My question is can I increase the rent from $100 to $300 a month on each lot? I'm just making sure I don't do anything against the law. If I can do it, it will increase my cash on cash to at least 30%. I probably should ask an attorney, but I just thought I could ask the BP community and see if anyone has done something like this in GA.