Opinions on Buying Rent Controlled Properties

[Trenton Miller]

I want your opinions on rent control BP!

I am currently remodeling a single family home in a gentrifying part of Los Angeles, California.  There is a quadraplex across the street that has been very nicely renovated, however it has been on the market for quite some time now, with multiple price drops.  

The other day I approached the agent after she had a showing to see what the deal was.  It turns out that both front units are rent controlled for $1,088 and $600.  However, one back unit rents for $2,200 and the other for $2,800.

If the front units were not rent controlled the property could cash flow quite nicely.  

So the question is...  What are your thoughts on purchasing a property like this?  Would you do it knowing that the rent controlled units will eventually be vacated and rents raised?