Sounds great, I know! But when they have been living there for 10+ years, are still paying half the market rent, and their unit is in desperate need of an update; how good is this situation really?
We are interested in purchasing two side by side 4-plexes that are all leased and everyone is currently paying. This feels like good news until we noticed that 5 of the 8 tenants are very long term, without a current lease, and paying way below market rent (<$300-$500 pm). Even with making the current updates, at market rental rates, these properties would have killer COCROI. Trouble is we would feel like complete scrooges taking away these people's long term homes; and although our state does not have rental increase restrictions, it would feel wrong to raise the rents $300 a month with 60 days notice. Not to mention it could piss them off enough that they stop paying altogether and won't leave. Are there any humane alternatives or do we just walk away from the deal?
