Do you find that this is very time-sensitive?

So for example, instead of increasing your rent from $600 to $625 and possibly turning off price sensitive tenants why not list at $595 and instead charge $25-$30/mo. for storage, etc.?

Because I do believe the conversation should be more delicate and sensitive versus someone who abandoned a property or is behind on taxes.Any help will definitely be appreciated.

Personally, I might take a very conservative approach due to the sensitive circumstances of the situation. 

Wasn't sure if what I was asking for was overstepping a little due to the personal info that may be on the agreements, but any sensitive info can always be blacked out.Either way, thanks for the reply, and I'll definitely seek the help of an attorney

Directly after purchasing I drove to the property and notified the former owner of the sale (being sensitive to their personal situation).

Finally, since the CAP rate at time of sale is so sensitive for IRR projections, I'm hearing various mitigation strategies for driving CAP rate lower or worst-case holding for awhile until sales conditions improve.  

@Ron S. yes I understand, because the situation is the seller is in is very sensitive so got to be clear

Running a sensitivity table with the LO Rate between $1,200-$1,600 and months to rent from 1-7 gives a range of IRR from 22-31% and MIRR of 15-19%.

I would highly recommend that you run the full check on him just like you would a new unknown tenant as you don't know how far out of kilter he went after the incident.He probably would like to rent from you again as you were sensitive to his previous situation and you made some points with him.