My thoughts on that are if my cash flow is great at 1500 to $2000 a month per unit And I have X amount of units and can buy a new unit every 20 months cash and increase my yearly income by 15000 on a 10 month  Fiscal year what's the problem with that Versus maybe leveraging or cash out riefi and only make hundreds A few 100 a month or break even

I would also increase your vacancy, capex and repairs # at the minimum as they are very low.

With the rents being below market and with minor increases, the value seems to be there.

The increases have been out of this world.

Hi!

So my hometown is a very small up and coming neighborhood with houses that range from 250k -450k. I am 35 minutes outside New York and 40 minutes from jersey shore. Next year they are launching a ferry service i...

Allow him to stay for an increased rate that makes it worth your time, somewhere around 25% or higher.

Does it actually work and increase profits without turning off potential guest? 

Your equity is reducing your possible returns not increasing your cash flow.If your father has no use for additional income he could leave it where it is and not care if it is impacted in a market shift or he could pull it out and invest in a income fund or a REIT. 

In may of this year I was going to increase the rent but I gave him a chose to pay $50 more per month or if he signed a two year contract I would keep the rent at $850/month.

The fact that housing has increased much more than rents historically indicates that rent appreciation will be greater than property appreciation for a while.