Obviously you are grandfathered in but if you were to do full renovation you may have a few issues to contend with.I ran some preliminary numbers as well and see a healthy 8 cap but cash on cash return is horrible at 6% but like you said you have room to raise the rents.I think your gut maybe on to something telling you to rethink your numbers.

I have yet to have a situation where a tenant voluntarily leaves without skipping out on 2-3 months rent and a mess to contend with.It usually begins with delay in rent as you experienced and after having the same communication as you did they promise the world but I still file the notice to quit and begin the court proceedings because here in CT it takes a long time to get a tenant out and they draw it out till the Marshall comes knocking.The latest tenant eviction last month was a real pain because he made us draw it all the way out till the marshall moved his stuff to storage.

He also makes the point that they do open - but ignores the fact that it's so difficult to do so that my wife can't do so.We contend that, regardless of whether we complained last year, we're complaining now.

We don't have harsh winters, wet humid conditions, or basements to contend with.

I contend that, in a market like mine, the rehabbers could take over and "own" the wholesaler's market if they wanted to.

The people from southern climates have a lot more mold to contend with, so mold remediation is a much bigger business than it is here.

I'll also throw out there that your local bank may provide more attractive downpayment terms, but likely you'll contend with shorter amortizations and balloon payments.

You also have overhead to contend with.

If you can't question it, it's not science.Now even if you put all that aside, we still have the very obvious facts to contend with - rising costs, inflation, massive increasing total debt far outweighing our GDP... do I really need to go on?

I contend that if anything's going to be assumed then the assumption should be NET, and GROSS the outlier.