Current rent is too low.

[Jonathan V.]

I'm currently considering a duplex, list price is $45,000, but I've been told I could probably get it for around $37,500. Very low crime area, good location. (I'm from the south in low populated blue collar area)

The units are both 1 bedroom 1 bath. There is a severe shortage of 1 bed 1 baths in this area. It is also located near the hospital so it's ideal for little old ladies.

Now, Section 8 has told me that they really really need 1 bed 1 baths for voucher holders and that at anytime I have a vacancy they can fill it. They pay $400 a month for section 8 1 bed 1 bath.

Current rent for this duplex is $285. Both sides are rented, both want to stay, one has been there 3 years and one has been there 6 months. Both are supposedly ideal tenants.

There is not a lot of deferred maintenance.

What's the play. I realize selling it after acquiring it could take a while, I'm considering holding it for as long as possible.

[Just Don]

determine what the 'market' rent is for these units. Whether they WANT to stay or not is irrelevant. Raise rents to market or slightly less if you want to give them a slight break.(no move out-redecorate-move in-vacancy loss and costs)