Newly Landlord Career

[Roman G Wippel]

I am a newly real estate investor, who acquired a tenant.

The deal is as follows:

ARV 98 K

Purchase Price 47 K

Rehab Price 15 K

Holding Cost/Transfer 1 K

ARV in 6 months at 70 percent 68.6 K

Yielded Profit 5.6 K

Current Rent Roll 695 per month for 6 month gross lease.

Question: I know I am meeting my 1 percent rule, however, I feel I can get the full value of rent at 925, but the current tenants are not able to pay that amount.

What is the best practice in this situation, between building a business versus putting someone out because their final abilities.

PS: they are elderly and still working past their retirement age.

Not sure how to approach the challenge. Would love any suggestions.