Bite the bullet and pay relocation fee? (Rent control)

[Adrian Romero]

Hello BP Community! Here's my dilemma I purchased a triplex in Boyle Heights California 4 years ago. I have one tenant that has been in the property for 20 years. The unit is a 3 bed 1 bath currently market rents range from $1,600-$2,100. The property is RSO (rent stabilization ordinance). Tenants current rent is $677.48.

After doing some research I have a couple options

• 1.Cash for Keys
• 2.Eviction under Ellis Act – The tenant would qualify as a “eligible tenant” which would be up to $15,000

My thoughts: let's say I pay 15k relocation plus 5k on rehab (unit is in good condition). I could increase my cash flow by 1k a month or should I save my money and look for another investment property to acquire? 

[Adrian Romero]

Thanks for feedback and advice.  Just wanted to give an update, Tenant refused the relocation fee but agreed to a rental increase to $900 a month for some minimal improvements (washing carpet).