Yes, you should raise the rents, but you should keep them slightly below the competition to keep the units occupied.

Education and Experience Are Critical to SuccessThe real estate profession is extremely complex with many intertwining segments.Because of the complexities of the real estate business and the need to be more competitive by knowing more, education is critical to enduring success in any business - especially in real estate.

I am personally negative on Manhattan longterm, as I think many aspects that made NY the center of US cultural mindset being competed/globalized away due to Internet.

I think it's a fairly competitive market over there.

that is a lot of competition.

http://www.biggerpockets.com/blogs/4430/blog_posts/32194-attention-wholesalers-2-ways-to-stand-out-from-your-competition

Because the of high demand, even that arena has become quite competitive and prices get bid higher and higher among the 2-3 folks (other investors/wholesalers) you're directly competing with on any given potential deal with a motivated seller. 

It is a blanket loan type product, I'm not sure how competitive they are with terms but they have sprung up for exactly this type of transaction.Something else to consider is instead of pursuing loans directly against the properties, maybe look for a LOC for your business.

@Martin S   what you are experiencing is a competitive market.  

I'm now in the Bay Area working for an IT company, and it seems the rental market here is very competitive...so I'd like to put my best foot forward and not scare anyone off.