I am considering buying a multi unit property in a coastal city. The demand for LTR is strong. The property overall is in decent shape and doesn't need major overhaul. It has long term tenants but the rent is way below market rate. It's been operational for more than 15 years so I can't arbitrarily increase the rent. The current rents won't cover the monthly mortgage even with 20% down. With annual max increases allowed by the state of Oregon it will take 6-8 years to bring them to market rate. Oregon tenant laws are strong. Curious to hear your experiences about buying a property that's rental controlled.
One of the ways to approach this is to perform repairs that render the unit unfit for occupancy, and rent to a new renter with market rate after completion. How viable is this? This would need to be done to each unit so it'll be costly.
