Any1 has any experiences with rent control type of properties?

[Rome Wells]

Any1 has any experiences with rent control type of properties?  I found one property with rent control on it.. and trying to make sense if I can truly get the maximum value out of this property.

Rents are approximately for 5 units...

$400, $530, $515, $600 and $694

Upon reading the law code, I noticed... that I can only increase rent by 20% on the first year....  Yet the broker stating I can increase it to between $1200-$1500 because the laws are relaxed in one of the towns where I am hunting for a deal.

I have several options A) I can give cash for keys to the tenant... but let's say I do... give the cash for keys for tenant to move out... the real question is... will I be able to increase rent?

This is what I read... from the town's code..

Rent increases in cases of vacancy.

A.

Notwithstanding any provision of this chapter, a landlord may raise the rent of an apartment when the preceding tenant has vacated the apartment or has been evicted, at a rate not to exceed twenty (20) percent of the base rent received for the twelve (12) months prior, for the first year only. This is to be deemed the maximum annual rental increase allowable on the base rent.

B.

In the event a landlord should seek to increase the base rent pursuant to subsection A, then the landlord must file a statement with the fair rental housing board stating that the preceding tenant has voluntarily vacated the apartment or has been evicted pursuant to state law, and did not vacate the apartment by harassment, threat, or threat of reprisal by the landlord.

C.

No landlord may request or receive more than one vacancy increase in rent for any twelve (12) month period, regardless of the number of vacancies in an individual apartment.

Is my understanding folks that I can not increase rent on 5 units all in 1 year correct?  Even if i was to upgrade that to condo units?

I guess what I am asking here folks is how realistic is it for me to fix and flip this house, by converting it to condo, and increase rents... with building where rent control is in place... and tenant's rents was not raised ... at all for the past 30 years.... 

Note... i realize it's far from me... 3 hours away... but where I live I simply can't find any deals that make any financial sense.