Analyzing multi family properties in LA-How to increase cashflow?

[Pras Palanichamy]

Hello All

Have been analyzing multifamily properties (2-6 units) in LA (Longbeach, SP, Lomita, Lawndate, Hawthorne..). Source - MLS / Realtor... However have not found properties that cash flow with as-is numbers.

However if I change the rent numbers from current to market rate (non rent control props) & reduce asking price by 25-30% then I see a ~8-10 cash on cash return.

My questions

1. In order to increase the rents / buy out the tenants, I need to know how long are each of the tenants have been living in the property. Is there a way to get this information by any means ? Any online tools ? Most of the time I don't get a response from my agent (saying they are waiting answer from seller's agent).

2. Also can we get an idea if the tenants are fine for a buyout ? If so can we negotiate a buyout before the finalizing the deal ? How much do we pay as a buyout ? 2-3 months rent ? [ I know it might depend on the situation, anyone with experience in LA please help]

3. Also there is a legal way to request tenants to leave the property giving them 1-2 months notice (even if there is no non compliance to the rental agreement) ?

4. Also can we legally request tenants from a rent control property to leave ? is there any legal bottleneck ? by giving them 2-3 months notice ? Any experiences here ?

5. Does it make sense to sign the deal (with a low ~ 1% cash on cash), in the hope that we can buy out the tenants / increase rent later to shore up cash-on-cash to 8 -9% in years 3 & 4 ? Has anyone tried this strategy ? Would you recommend ?