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.

[Steve Vaughan]

Quote from @Roman G Wippel:

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

Good on you for considering the tenants.

We can grant more mercy the longer we do this.  

Maybe a happy medium would be to raise them $100 If what they have is decent and safe. Less work for you and still a decent ROI.

We don't always need to maximize rents, tenant considerations be demand.