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

In 2022 the rents increased 12.1% year over year which was the 3rd highest in the entire country per https://www.axios.com/local/cleveland/2023/02/14/cleveland-rent-prices.

For me, I could handle the increase in cost and still pay much less than If I got a 4/2 SF.

He abandoned trying to scale.Learning from this experience when my partner and I decided we wanted to double our net income, we realized it would take a increase of 2 1/2 time our volume and probably need to triple our deal flow.  

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. 

There are two ways to do this decrease spending and increase income.

The margins are tight which increases risk.

You increase the likelihood that you continue to receive that $8,500 each month. 

And during inflationary times, our rental rates increase.

- The same can be said of high percentage increases.