How to raise rents on new purchase when they are 60% of CMR?

[Jim Costa]

I am in the process of buying 3 duplexes that are undervalued because of rents. They are renting for $800-850. Market rents for this size in this neighborhood. should be 1100-1200. Once you purchase how do you raise rents that high. It is a business decision to buy but how do you go in to somebody that has been living there for several years and pays rent on time and say you are going to raise rents 50%. We are not in rent control. I can do what I did before and ask tenant what is fair and affordable for a rent increase ( has resulted in $100 jumps), but this will take me 3-4 years to get rents to today's market rents. This is costing 20K a year in lost potential rents. Where is the line between a money hungry investor and a landlord with a heart.