Or do it gradually?

So get on as many wholesaler mailing lists as possible and you will gradually find out who has the real deals and who is wishful thinking.  

The holding and opportunity costs on a 10-unit apartment while you gradually get it ready to rent or sell are very high.

At gross rents of $2,850/month, my cash will come back gradually over the next 3-4 years.  

Now, we have a more measured market stress on our hands- Yellen gradually tightening the screw of interest rates- and we lack the universal sentiment that real estate can only increase in value.

The Fed gradually raising rates is smart since the end consumer wouldn't complain as much on a .25 increase every quarter over a 2.00 increase all at once.

When I was looking to buy multifamily properties it was incredibly common to find units under rented so any property I would buy I would immediately issue rent increases to gradually get them up to market rent.

If relatively few places allow pets in your area, they're probably not going to want to leave...even if you gradually increase their rent. 

Do we sit down with them and come up with a plan to raise it gradually over time with an end target of $700?

@Joshua Martin I would say keep it as a rental, the neighborhood is gradually improving as you go East and that should support a long term hold strategy.