All Forum Posts by: Garrett Blanchard

In the process of purchasing a 6 unit complex and the rents have not been raised in years. 4 units are 2/1, one is 2/2 and one is 3/1. The rents are as follows... 

2/1 - $425(been this price for 15 years), 2/1 - $600, 2/1 - $650(just raised due to new tenant), 2/1 - $500, 2/1 - $500 and 3/1 - $700(owners daughter lives in). the 2 bdrms should be 650-725 or possibly more and the 3 bdrm should be at least 850. None of the units have leases and are all month to month. 

Question is... How do I go about raising the rents? Raise them all at once to where they should be and hope you don't get a bunch of 30 day notices? I was thinking about offering tenants the option of signing a lease at a lower amount and guarantee the rent not to be raised for that 1 year lease. If they don't want to do a lease, raise the rents say every 6 months until the rents are where they need to be? 

I really want to do this correct... where would I list a deal I'm looking to aquire and need help with financing?

Looking for any financing I can get on it. It is not on the market and they even said they can work with the price to make it work at the bank if needed. I don't have the 20% to put down on it so I may have to get a loan for the down payment privately, but even then most lenders want to see that you had that money for a while in your account before they'll give you the loan. On a deal like this even getting a hard money loan from someone at 10% for 20 years it would be a good deal.

I don't have a large savings from my other investment and was thinking I'd change the rents to market once I've saved from this property for 3-6 months in case a couple people choose to move as soon as I raise the rents. The current owner is a fellow employee of mine and very honest person. He states all of the tenants tell him he's crazy that he hasn't raised the rents in years. One is his own relative saying this. Lol.

Looking to purchase 6 units. It is (2) 3 unit residential units. 120k cost. Approx $12k/yr taxes and water/sewer. All utilities paid by tenants except water/sewer. Currently all units rented with Long term tenants without leases, but no back rent owed. All 6 units could be raised $100/mo minimum as they haven’t been raised in years. Monthly gross income is $3275. (5) 2bd/1 bath and (1) 2bd/2 bath. I know the current owner. They have owned the property along with other properties in the area for many years. The family is just ready to move on from this particular property because honestly no one wants it anymore and everyone else has their own lives that they want to focus on. On paper and in my mind this is a smoking deal and I should jump on it. Just looking for other opinions about the deal.

Check out Mobile home park investors with Jefferson Lilly. I've listened to a bunch of the podcasts and they are super helpful.

Interested in this too...

interested to learn more about this too

I think it's a great idea.

I’ve read this too. Interested in others opinions also.