The rehab consisted of ripping out the old carpet and refurbishing the original hardwood floor, put in new window sills, removed old paneling in 2 rooms, sheet rocked, mud, and painted almost the entire interior of the house.

I own 4 SFR... and a 4-Plex. in Eagle Rock/Glassell Park area, Los Angeles.  

@John Warren said it beautifully.Thank your lucky stars you hadn't signed the lease. 

You will get multiple opinions....no right or wrong way as long as you follow the state laws on how much you can increase it and when....Different "camps"- Leave it at current rent for 6 months or so get a feel for the unit and tenants- don't rock the boat on day 1- Slow increase over 6-12 months- rapid changes results in turnover and that kills profit- Jump right to market rent.... if they move then fine....fix it up, get market and YOUR tenant choiceYour choice......Biggest factor to consider.... the rent may be low but fit the unit...... ie. lots of deferred maintenance, old style/design, Capex coming up etc etc..... so to get market rate on the open market, you may need to sink decent $$ to get it fixed up to compare to the other units on the open market right now at that rate....

Stop thinking interest rate, and star thinking in $$$$$.

Hi @Min Kwon - there are turnkey opportunities in your price range and within the closest suburbs - like Pflugerville, Round Rock, Georgetown, Kyle, and Buda.

You could market your project as a 5 star or class A park.

https://www.biggerpockets.com/blog/biggerpockets-podcast-314-find-rockstar-contractors-and-manage-like-a-boss-andresa-guidelli

I’ve gotten the first 3 5-star reviews on airbnb, but none on VRBO...my first booking on that platform is coming up next. 

Credit is Rock solid so not worried there.