Household Debt Rose by $184 Billion in Q1 2024; Delinquency Transition Rates Increased Across All Debt TypesMay 14, 2024

While rates may not decrease, the significant double-digit increases should level off.

It even states that the lease “will repeat itself” but doesn’t specify terms like figures or percentages for rent increases.

The mortgage would stay under the seller's name.The buyer could then rent out the unit, renovate, etc. to increase cash flow or make more money.But aside from a possible "due on clause" being called by the mortgage company, what's the benefit to the seller?

Pros - guaranteed rent, tenants stay longer on averageCons - more mgmt needed (lease violations), they tend to not take great care of properties (increase maintenance expense or deferred maintenance)

This was in a middle class neighborhood and I get why that is less risk however with apartments increasingly including laundry, I would imagine demand lessening in that location. 

Corona impacts will greatly impact this surplus but it is nice that the state had a $9B surplus.CA, over the last 10 years, had the 2nd largest net population increase of all 50 states (last I looked - I believe it to still be true). 

When we create our business plan, we also include our exit plan.We'll only proceed if we can clean this up, acquire new tenants at higher rents so we can increase our NOI, which in turn should reflect our cap rate and profits.Since this asset class is new to us we will tread cautiously.Scheduled to preview tomorrow. 

Build your portfolio as your knowledge and wealth increase. 

The allowable rent increase is not typically the big issue with rent control, the bigger issue is getting rid of poor tenants that pay their rent.