Significantly Under Market Rents

[Michael Sharpe]

I have an opportunity to purchase a four unit property in either Chicago, IL or one of the surrounding suburbs. All off the current rents the existing tenents are paying are significantly under market for the areas. Should I be hesitant about moving forward with putting in an offer or simply raise the rents once I purchase the property?

I would really appreciate any and all suggestions/advice, as this is my first rental property purchase. Thank you in advance.

[Henry Lazerow]

I have sold over 40 million of chicago 2-4 units and cant think of even one deal I represented buyer on where rents were at market rate. Most of my clients BP type buyers who want good deal. The buildings at market rate are priced high so normal to raise them when getting a good deal. My 4 unit went from $580 to $1350 and did one in albany recently that went up 60% with barely any work.