Purchase price: $50,000 Cash invested: $10,000 Sale price: $84,900 2 bed 1 bath single family home with existing tenants rented at $650/month.

In the end, we gave the tenants 3 months notice that the rents would be raised 25% at the end of their existing lease and each year until they reach market rates.

I didn't know that existed.  

Do you not exist online? 

If you are a pro member, their is a bigger pockets form for adding someone to an existing lease. 

I was just reading today an appellate court opinion here in Illinois where someone purchased a 2nd mortgage w/o realizing a 1st existed, then tried to reverse the CONFIRMED sale after subsequent auction on foreclosure of the 1st for a myriad of reasons, and then sued his attorney for malpractice: https://ilcourtsaudio.blob.cor...As part of the legal malpractice claim against his lawyer, the plaintiff (2nd mtg buyer) stated, "that Gooch also “negligently failed to stay the final judgment of sale during appeal, resulting in dismissal of the appeal in October 2015 as moot because no remedy remained available to reverse the sale to a third-party purchaser."

I'm definitely not one of those "The Secret" speak it into existence type people, but making a choice to be and think differently is a conscious effort that you have to choose each and every day.

To soften the blow, you could even print a recent article that explains why rents across the country (or your particular area) are increasing at such a high rate.This gives you 3rd party verification and shows you are not just pulling numbers out of thin air.I imagine the tenants will not be surprised, and will likely be wondering what took so long for the rents to increase over the years.I read a recent news article about a lady in Plano, TX that got an increase notice of $750…yes $750 on top of existing rent rate. 

There is an existing policy on the building.  

Working with our 2 existing PM's I've made a very detailed list of what I must have from any PM I work with, PO's, estimates with attached photos of front of unit, posted address, and damage.