Paul has in the past enacted restrictions on raising rents.

In this deal, the borrower soon defaulted and instead of foreclosing Capella raised another $1M from investors.

Typically  issues are raised when the exterior is not kept up with / parking on grass / garbage in neighborhoods where everyone takes pretty good care of their homes.If you keep it clean and run a tight ship, you should be okay most of the time.

Just keep an eye on how both markets are performing, and maybe start small, like taking out $50k, so you can test the waters without over-leveraging.

The sustainability test is that 3/4 of units need to cover 75% of the mortgage from my understanding.

A good example to reduce your potential costs without raising rents is to have the tenant agree to handle all repairs under a certain amount.

so it turned into an accidental flip.i have one i did in 2021-2022 that broke even when i finished, but now cash flows well because i've been able to raise the rent a few times.happy to help further

@Mindy RosscupThe knowledge you gain by studying and taking the test to become a RE agent.

Still, it makes sense because oftentimes some of the rents have never been raised for years, and those NW side neighborhoods have increased rent dramatically! 

They leave, you raise rents and on it goes.