I would make sure the numbers work without assuming you will get you increased projected rent increase...it will give you more negotiation leverage when talking to the seller in regards to why you cant pay more because the math wont let you for cash flow....then if it works out take ur crack at a gradual rent increase knowing that u have cash flow going into the deal

Hi All, While shifting gradually (15 years) from IT to real estate (10 years now F/T) and building a portfolio for self and others I'm actively pursuing to unlock equity in order to ramp up either residential or mixed use value-add properties in designated farms in Central to Northern New Jersey.Always open to J/V, sharing & learnig for a win-win.Chees!

Its possible that you need to watch these properties for 6+ months though as the price will gradually decrease to a reasonable level.

I was planning on gradually converting them to corporate rentals.

As a renter myself at one time, I think it would be much easier to swallow the increase of you gave them a very clear picture of what you intend to raise the rents to up front and created a plan to gradually increase over the coarse of 6 mo to a year.

@Link McGinnis - My plan is to fix it up gradually over the next couple years and rent out the entire place.

I recommend starting in residential than gradually go into commercial.

I can do this either by house-hacking the place in 2 years' time (it's a house + large outbuilding) or structuring a gradual buy-out as I acquire the capital.

I plan to gradually fix up the units and then raise the rent progressively until we reach market level which is around $425 for 2bd/1bth a month and $500 for 3bd/1bth.

If you have the W-2 income to lean on early for qualification, it will help you build the portfolio to the point that you can gradually transition into full-time REI without hurting your financing.