Purchased a 4 unit Multi Family - Rents WAY below Market Value

[Bud Gaffney]

Hi all,

I recently purchased a 4 unit multi family property in Taunton, MA. I bought the property in September 2019.

They are all 2 bedroom 1 bath and approx. 1,000 ft2. The units are rented way below market value (It was an older owner who seldom raised the rents) I inherited all the tenants with these low rents. The rents are covering all expenses with ~$100-$200/month total to spare. (15 year note, 14 years left)

The rents are $870, $925, $950, and $1000.

The market value is ~$1250-$1300/unit. I have a big heart, but I also like to think I have a big brain. The holidays are coming up, so I’ve already dismissed doing much of anything until after the new year. Do you have any advice what I should do without upsetting my tenants too much? How much would you raise the rent? All comments are welcome please. Thank you in advance!