Hi @Ila Darafshandar,
@Dan H. has some great insights here, but I will add what I can!
It seems as though your friend is ~700/month behind on rents per unit. The most you are allowed to raise rents on a year over year basis is 10% or 5%+CPI which ever is lower. This past year it is 8.6% as Dan said. If the rents are already nearing market rates, will she be able to go up that much?
Is she paying a property manager? if so she should be self managing and saving herself the 6-10% on rents. Depending on her contract she may have to wait out the term.
Is she currently covering utilities? If so, shifting that to the tenants at the time of lease renewal is another great way to decrease her overall debt service.
Other good ways to increase revenue in the mean time:
- Raising washer/dryer prices. this may only equate to $4-$5 per unit per week, but its better than nothing
- If there are any unassigned parking spaces, meaning not attached to any lease, make them paid only any offer them to tenants at a new fee. Again this may only bee in the hundreds every month, but it's better than nothing.
From the outside, it looks as though she will have to nickel and dime her way into being cash flow positive. As Dan said though, there are many tax benefits. I am not a CPA, but I can tell you how I would do it if self managing. I would keep track of of all the losses, and work with a CPA. Depending on her income level, she may be able to write off a portion against her income. At the very least she will be able to carry forward the losses for a very long time, helping her get into cash flow positive status much faster.