Multifamily in sfo - Rent Control

[Sid Naik]

Have a question regarding rent control in San Francisco . A lot of 4-6 unit multifamily units I am looking right now have at least 2 units which are at very low rents . lets say i buy a 6 unit with 2 under rent control and 4 at market rents  . Even the 4 units will be capped for prices increases . so how do i increase the value of the property if the remaining 4 also decide to stay long term . I have to pray they leave sometime in the future for me to increase rents and thereby increase build value ? This does not sound like a great business strategy . Am I missing something ? 

[Amit M.]

“so key will be to select tenants who you think will not be squatters”

Bingo!