They were selling on pro forma, but the market and the debt market have shifted, and it's aa lot harder to achieve higher pricing with lower rents.We've purchased over 2,000 units, and the simple answer to the question is that they are either mom and pops and run their businesses with ZERO KPIs, they do not want to risk losing tenants if they raise rents, and they don't treat their asset as a business.When you take over, it can be difficult to get rents to market if they are very suppressed.

A debt service loan is popular for that step.

NO debt NO debt NO debt on rentals is the way to go as you mature in age as an investors.

Everything you said is exactly why-- debt levels, market demand, associated costs(taxes & insurance).

For example a 25 y o applicant who has used credit minimally and has an unpaid bill of $50 in collections from when they switched phone carriers may have a low score, but the only negative on their credit is this one SMALL $50 debt.

To that end I just paid off yesterday my last legacy bank debt took me 12 years but its done an gone now. 

They hold all the cards.

If they have paid off property (especially if the investor is much older), they probably have a healthy stock portfolio as well :) Debt has worked for me, and I'm glad it works for you too!

So far mostly people are telling me I'm probably stuck until their lease is over. meanwhile I also need to pay down my debt and improve credit score. 

I paid him half and half went to the debt.