I've just closed on a three-family property in North Bergen, NJ.  Two of the units are occupied by tenants who are on month-to-month leases via the previous owner, and I intend to move into the third unit.  I fear that I failed to fully understand and appreciate the rent control ordinance for this area before closing (http://www.northbergen.org/_Content/pdf/Rent-Contr...).  Neither my agent or lawyer said a word about it.  

In any case, it appears to give me little to no control over rent amounts, restricting them to within 2.5% (or less based on the consumer price index) of previous amounts.  It also appears to make investing in improvements so onerous that doing so is cost prohibitive.  I had planned to fix a few things (e.g. the chimney was found to be in bad shape) and make some improvements (e.g. update kitchen/bath in one unit), but I've stopped in my tracks as I now fear doing so would provide little to no return on investment.

Does anyone out there with experience in this area have insight to share?  Was it a mistake to invest in this town?