buying a multi-family townhouse with current month-to-month lease

[Liming Zhang]

I am interested in a less than 4 unit townhouse at D.C. all the units are under month-to-month lease. I think the rent is below market. for example, one 2b1b 900 sqft unit is for $2250 per month. The market is above $3000. Consider the condition is not newly-renovated one. It can still be raised quite a lot like $2800.

My question is here for anyone is landlords in DC or familiar with DC rent law. Do you think I can raise the rent as a new owner? how much more I can raise? Any legal concerns?

The other question: what is the proper cap rate in D.C. market for me to do an evaluation of the deal?

Thank you!