Fun Post: New Property Scenario

[Jordan Fiore]

Hey Everyone,

Just wanted to do another discussion post that could potentially give guidance to a lot of investors that are purchasing properties here in Cincinnati. It would be great for veteran investors to give their feedback on what they would do in this scenario.

We all know the housing market has been skyrocketing but there are a ton of properties that have longer term tenants that live there that are WELL BELOW market rent. As an investor taking on a property that has all units clearly under market rent, how would you go about this scenario?

Scenario:

You are taking on a 4 unit building with each unit currently rented at $500 but market rent is at $850! All tenants are currently month to month. Tenants have all been there between 3-10 years with a minor $50 rent increase just 6 months ago.

I would love to hear different approaches that one might make to this!