Rent controlled rentals

[John Paul Whaley]

Does anyone own a rental in a rent controlled state? I am thinking of buying in DC, which I just discovered is rent controlled. 

My plan would be to buy a property with a conventional loan, live in it for one year, then rent it out at the end of that year. There are no restrictions as to the rent I can charge when I first rent the property, right? Only to the increases I can make for an existing tenant thereafter? 

It seems like DC’s rent control ordinance allows for minimal increases justified by increased CPI (Consumer Price Index). Although those increases are slight, you can still increase the rent by up to 10% in some cases annually. 

Let me know if anyone has any advice about investing in a rent controlled area before I dive in head first. 

Thanks!