36% Rent increse Two weeks Into First duplex as a 19 year old Investor

Upstate New York, New York
Real Estate Success Stories
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36% Rent increse Two weeks Into First duplex as a 19 year old Investor

Elijah Berg
Investor · Syracuse, NY · Member since 2023 · 26 posts · 16 votes

Hello, Bigger Pockets community!

I am very excited To have finally closed on my first investment here in Liverpool NY as a 19-year-old investor as of last week and be auditioning for the Bigger Pockets rookie podcast this Monday! After a couple of years of treading the path to frugality to build this financial runway, I've networked with the greatest people who made this all happen, of course, it took the strength, determination, time, etc to place myself where I am today but, without the mentorship of my two great mentors whom I wish used BiggerPockets so I can mention, I don't believe I would have made it thus far relying on some whimsical dream that this will all pan out accordingly, thank you for everything Greg and Lashawn.

In addition, I would like to thank Bigger Pockets for connecting me with the greatest realtor @Stephen Schmitt Who took my dreams and aspirations to the core when we first connected and spoke about my future goals to replace my W2 job for financial freedom. within three months of me deciding to pull the trigger and get pre-approved, we found this killer cash-cow that apprised over purchase price!!! 

After owning the property for 1 week and putting in a lot of sweat equity, I've concluded that I want to keep the Inherited tenants based on the condition of their living space and the quality of the people, Knowing I want to keep them to save myself the headache of a  turnover and vacancy of a projected move out If I were to suddenly increase rents. I turned to the Diontalk Binder strategy which educates the tenants on the current price of market rents, section 8, etc, and what I could potentially earn if they were to move out ( In this case being 1500 for a 3b 1ba). they then realize this and know paying a $400 increase (36.6% Increase) would be the best option vs moving out, living in cheaper housing, or going to market rent in the area. As a result, I've increased the rent to my standards and past other landlords' standards who are afraid to go past 10%!!! while leaving with happy tenants who will stay!

I hope to share the rest of my story hopefully being featured on the BP on the rookie podcast. If not I will consistently update here to create the biggest outreach I can considering my age!!! 

Thank you Bigger Pockets community. for everything!


Link to Binder Strategy- 

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V.G JasonPro Member
Investor · Member since 2022 · 3k+ posts · 3k+ votes
2y

They're not happy tenants, they're stuck tenants. Don't confuse the two.

You're 19, good for you to getting involved but keep it trim. You don't want to broadcast this. 

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  • V.G JasonPro Member
    Investor · Member since 2022 · 3k+ posts · 3k+ votes
    2y

    They're not happy tenants, they're stuck tenants. Don't confuse the two.

    You're 19, good for you to getting involved but keep it trim. You don't want to broadcast this. 

    6Reply
  • Elijah Berg
    OP
    Investor · Syracuse, NY · Member since 2023 · 26 posts · 16 votes
    2y
    Quote from @V.G Jason:

    They're not happy tenants, they're stuck tenants. Don't confuse the two.

    You're 19, good for you to getting involved but keep it trim. You don't want to broadcast this. 

    Stuck? The tenants proposed the rent increase to $1200, not me...... I'm a little confused here. If you watched the video I provided in the post It will explain how the strategy works very clearly.

    also thanks for the advice! but without the whole "broadcasting" thing that you mention, I don't think I would have generated the outreach to the people of my age today who ask me for guidance on their first investment.

    Have a great rest of your day and thank you for your consideration!!!

    0Reply
  • Rick BassettBusiness Member
    Property Manager · Greater New Haven, CT · Member since 2010 · 377 posts · 434 votes
    2y

    @Elijah Berg ‘a lot of sweat equity in 1 week’’? How so?

    475-900-3100
    Bassett Property Management5108 Reviews
    WebsiteView Page
    2Reply
  • Elijah Berg
    OP
    Investor · Syracuse, NY · Member since 2023 · 26 posts · 16 votes
    2y
    Quote from @Rick Bassett:

    @Elijah Berg ‘a lot of sweat equity in 1 week’’? How so?

     Hi Rick! By myself, not much would be possible. So thankfully with the help of my mentor and his crew of Six, we were able to complete all prep and are amidst our final pass for sanding floors before our water-based polyurethane. 

    We discovered the previous owner had dementia which explained most of the work we needed to do, Our short-term is improving that unit to rental standard, not necessarily adding property value as he and I are still drawing floor plans for Long term.

    Thank you!!!

    0Reply
  • Tim J.
    Investor · Vermont and New York · Member since 2023 · 308 posts · 309 votes
    2y
    So you are saying you got a crew of six people to work for free for a week?
    0Reply
  • Elijah Berg
    OP
    Investor · Syracuse, NY · Member since 2023 · 26 posts · 16 votes
    2y
    Quote from @Tim J.:
    So you are saying you got a crew of six people to work for free for a week?

    As in my mentor decided to help me by paying his crew for a week? Then Yes, that's exactly what I'm saying.

    Why does he decide to help me? because that's how our relationship works.... I've done plenty of work in the past for him where this is simply returning the favor to help on my first property!

    Thank you!!!



    0Reply
  • Tim J.
    Investor · Vermont and New York · Member since 2023 · 308 posts · 309 votes
    2y

    So this is some kind of communal organization - there is a "mentor" at the top, and a bunch of "mentees" who do work for each other/for the mentor.

    Hopefully the asset is all in your name and your name only. 

    Congrats on getting a rental property so early in life.

    0Reply
  • Elijah Berg
    OP
    Investor · Syracuse, NY · Member since 2023 · 26 posts · 16 votes
    2y
    Quote from @Tim J.:

    So this is some kind of communal organization - there is a "mentor" at the top, and a bunch of "mentees" who do work for each other/for the mentor.

    Hopefully the asset is all in your name and your name only. 

    Congrats on getting a rental property so early in life.

     No, hopefully, one day soon though!

    I met my mentor Greg through my gym as I am a registered amateur USA boxer and I always wondered why this older fellow was always boxing with us at the gym and never at work. He told me he was a Landlord and I asked him "As in a real estate investor?" and he said yes, from there I've spent countless hours working with him on his properties out of the gym to expand my knowledge the best I can. 

    yes, the asset is entirely within my name, and thank you so much for the Congrats on the success!

    thankfully I get to share my story further in-depth next week as 
    I have the opportunity to record with Ashley Kehr and Tony J. Robbinson for The Bigger Pockets Rookie Podcast episode coming up!!!




     

    0Reply
  • Louis P Lessor
    Janesville WI · Member since 2019 · 55 posts · 36 votes
    1y

    Congrats on getting the property early and for putting in the grind to get the property in a better place. 

    Keep up the hustle, good things never come easy in life. 

    0Reply
  • Carini Rochester
    Investor · Rochester, NY · Member since 2016 · 576 posts · 358 votes
    1y

    A very encouraging post! Thanks for sharing the Dion Talk Binder link. I had never heard of this. At annual rent increases, I do scour Zillow for market rents in the area, which I share with my tenants. I think it puts the increase into perspective and I get no pushback or arguments from my tenants. I'll watch a few videos and see what I can learn. Thanks again.

    0Reply
  • Michael Carter
    Real Estate Agent · Syracuse NY · Member since 2024 · 12 posts · 8 votes
    1y
    Quote from @V.G Jason:

    They're not happy tenants, they're stuck tenants. Don't confuse the two.

    You're 19, good for you to getting involved but keep it trim. You don't want to broadcast this. 


    Agreed. I guarantee both tenants were at least passively looking at other apartments that same day. 

    0Reply
  • Elijah Berg
    OP
    Investor · Syracuse, NY · Member since 2023 · 26 posts · 16 votes
    1y
    Quote from @Michael Carter:
    Quote from @V.G Jason:

    They're not happy tenants, they're stuck tenants. Don't confuse the two.

    You're 19, good for you to getting involved but keep it trim. You don't want to broadcast this. 

    yes they did! and soon realized that there was no aviable apartments in or around the same neighborhood for the price that they were looking for.

     if they wanted cheaper rent? move downtown into an apartment. If they Wanted to stay inside a duplex within class A+ neighborhood?
    (in which they did)  

    then pay the price, or another tennant will🤷
    0Reply
  • Elijah Berg
    OP
    Investor · Syracuse, NY · Member since 2023 · 26 posts · 16 votes
    1y
    Quote from @Elijah Berg:
    Quote from @Michael Carter:
    Quote from @V.G Jason:

    They're not happy tenants, they're stuck tenants. Don't confuse the two.

    You're 19, good for you to getting involved but keep it trim. You don't want to broadcast this. 

    yes they did! and soon realized that there was no aviable apartments in or around the same neighborhood for the price that they were looking for.

     if they wanted cheaper rent? move downtown into an apartment. If they Wanted to stay inside a duplex within class A+ neighborhood?
    (in which they did)  

    then pay the price, or another tennant will simple as that🤷
    0Reply
  • Michael Carter
    Real Estate Agent · Syracuse NY · Member since 2024 · 12 posts · 8 votes
    1y
    Quote from @Elijah Berg:
    Quote from @Michael Carter:
    Quote from @V.G Jason:

    They're not happy tenants, they're stuck tenants. Don't confuse the two.

    You're 19, good for you to getting involved but keep it trim. You don't want to broadcast this. 

    yes they did! and soon realized that there was no aviable apartments in or around the same neighborhood for the price that they were looking for.

     if they wanted cheaper rent? move downtown into an apartment. If they Wanted to stay inside a duplex within class A+ neighborhood?
    (in which they did)  

    then pay the price, or another tennant will🤷

    You made the claim that your tenants were now "happy" to pay a $400 rent increase. No, they're not and its naive of you to think that way. And like the first person said about how the tenants are more likely stuck than happy, you just proved that point. They're not stuck as in "there are no other options", they're stuck as in "there are cheaper, crappier options but we'd have to pack up our entire lives and deal with the other expenses/headaches that come with moving so I guess we might as well just suffer with the increase". 

    There are landlords who are proud to own properties while offering their communities a nice and safe place to live (and enjoying the benefits of having someone else pay for your appreciating asset). And there are landlords who only care about maximizing profit and nothing else. I'm not saying you're one or the other, I don't even know you. But I do know our city needs a lot more of the first type. 

    1Reply
  • Travis TimmonsPro Member
    Rental Property Investor · Ellsworth, ME · Member since 2021 · 1k+ posts · 2k+ votes
    1y

    Two things are true at the same time. 

    1. You're doing a great thing for your financial future. Raising rents to market levels is a big deal and hard to do. 

    2. You lack the proper perspective. It would pi$$ me off to no end if a 19 year old came to talk to me with a binder telling me how good of a deal I am getting by seeing a 36% rent increase. A good thing happened to you and a bad thing happened to them. Full stop.

    @Elijah Berg You're posting because you want an atta boy. So do I and the rest of us. I get that, and you're doing great. I see that it has been 3 months since the original post; how are things going?

    1Reply
  • Elijah Berg
    OP
    Investor · Syracuse, NY · Member since 2023 · 26 posts · 16 votes
    1y
    Quote from @Travis Timmons:

    Two things are true at the same time. 

    1. You're doing a great thing for your financial future. Raising rents to market levels is a big deal and hard to do. 

    2. You lack the proper perspective. It would pi$$ me off to no end if a 19 year old came to talk to me with a binder telling me how good of a deal I am getting by seeing a 36% rent increase. A good thing happened to you and a bad thing happened to them. Full stop.

    @Elijah Berg You're posting because you want an atta boy. So do I and the rest of us. I get that, and you're doing great. I see that it has been 3 months since the original post; how are things going?

    Hi travis! Thank you for your response! 1- thank you for the congrats.

    2-  For them or anyone older such as yourself, At the end of the day a “Perspective” is simply just a perspective, everyone will always have a different view. I may be 19 but that does not have any factor in how I efficiently operate my business, as you can see. Most of this help comes from Both of my mentors so yes I am grateful

    3- tennacy is going great and sound! Ive also had the opportunity to be featured as a guest on the official Bigger Pockets Real Estate Rookie Podcast. Check it out! I posted the link or you can find it on BP Rookie #465

    0Reply
  • Elijah Berg
    OP
    Investor · Syracuse, NY · Member since 2023 · 26 posts · 16 votes
    1y
    Quote from @Michael Carter:
    Quote from @Elijah Berg:
    Quote from @Michael Carter:
    Quote from @V.G Jason:

    They're not happy tenants, they're stuck tenants. Don't confuse the two.

    You're 19, good for you to getting involved but keep it trim. You don't want to broadcast this. 

    yes they did! and soon realized that there was no aviable apartments in or around the same neighborhood for the price that they were looking for.

     if they wanted cheaper rent? move downtown into an apartment. If they Wanted to stay inside a duplex within class A+ neighborhood?
    (in which they did)  

    then pay the price, or another tennant will🤷

    You made the claim that your tenants were now "happy" to pay a $400 rent increase. No, they're not and its naive of you to think that way. And like the first person said about how the tenants are more likely stuck than happy, you just proved that point. They're not stuck as in "there are no other options", they're stuck as in "there are cheaper, crappier options but we'd have to pack up our entire lives and deal with the other expenses/headaches that come with moving so I guess we might as well just suffer with the increase". 

    There are landlords who are proud to own properties while offering their communities a nice and safe place to live (and enjoying the benefits of having someone else pay for your appreciating asset). And there are landlords who only care about maximizing profit and nothing else. I'm not saying you're one or the other, I don't even know you. But I do know our city needs a lot more of the first type. 

    That’s absolutely great and wonderful for the investors who are in the position to stabilize that!!!

    as of right now, I'm a 19 year old real estate investor with his first cash flowing duplex. 

    As a result I must Study the market and know what i’m worth. I Offered it to them at 10% below market with him paying utilities. he wanted it, so I screened him to verify he can afford it. If he didn't want it or can't afford it, I would have reward him with 60 days time to find another place, then find a new tenant that can pay what it is worth….  Any other sympathy is unfortunately just Poor Business Practice.  


    Thank you!!!

    0Reply
  • Michael Carter
    Real Estate Agent · Syracuse NY · Member since 2024 · 12 posts · 8 votes
    1y
    Quote from @Elijah Berg:
    Quote from @Michael Carter:
    Quote from @Elijah Berg:
    Quote from @Michael Carter:
    Quote from @V.G Jason:

    They're not happy tenants, they're stuck tenants. Don't confuse the two.

    You're 19, good for you to getting involved but keep it trim. You don't want to broadcast this. 

    yes they did! and soon realized that there was no aviable apartments in or around the same neighborhood for the price that they were looking for.

     if they wanted cheaper rent? move downtown into an apartment. If they Wanted to stay inside a duplex within class A+ neighborhood?
    (in which they did)  

    then pay the price, or another tennant will🤷

    You made the claim that your tenants were now "happy" to pay a $400 rent increase. No, they're not and its naive of you to think that way. And like the first person said about how the tenants are more likely stuck than happy, you just proved that point. They're not stuck as in "there are no other options", they're stuck as in "there are cheaper, crappier options but we'd have to pack up our entire lives and deal with the other expenses/headaches that come with moving so I guess we might as well just suffer with the increase". 

    There are landlords who are proud to own properties while offering their communities a nice and safe place to live (and enjoying the benefits of having someone else pay for your appreciating asset). And there are landlords who only care about maximizing profit and nothing else. I'm not saying you're one or the other, I don't even know you. But I do know our city needs a lot more of the first type. 

    That’s absolutely great and wonderful for the investors who are in the position to stabilize that!!!

    as of right now, I'm a 19 year old real estate investor with his first cash flowing duplex. 

    As a result I must Study the market and know what i’m worth. I Offered it to them at 10% below market with him paying utilities. he wanted it, so I screened him to verify he can afford it. If he didn't want it or can't afford it, I would have reward him with 60 days time to find another place, then find a new tenant that can pay what it is worth….  Any other sympathy is unfortunately just Poor Business Practice.  


    Thank you!!!


     "I would have reward him with 60 days time to find another place"

    You need to reflect. 

    0Reply
  • Anderson Banegas Cerrato
    Investor · CA · Member since 2024 · 82 posts · 31 votes
    1y

    Elijah, this is pure fire, man! At 19, you’ve already mastered what most people spend years figuring out—turning determination into action and action into results. That 36% rent increase while keeping happy tenants shows how smart and intentional you are about building relationships, not just cash flow.

    I’m grinding to get my first deal and seeing your story gets me hyped! How did it feel walking into that closing room, knowing you were about to own your first investment property? That’s a moment I can’t wait to create for myself

    1Reply
  • Elijah Berg
    OP
    Investor · Syracuse, NY · Member since 2023 · 26 posts · 16 votes
    1y
    Quote from @Michael Carter:
    Quote from @Elijah Berg:
    Quote from @Michael Carter:
    Quote from @Elijah Berg:
    Quote from @Michael Carter:
    Quote from @V.G Jason:

    They're not happy tenants, they're stuck tenants. Don't confuse the two.

    You're 19, good for you to getting involved but keep it trim. You don't want to broadcast this. 

    yes they did! and soon realized that there was no aviable apartments in or around the same neighborhood for the price that they were looking for.

     if they wanted cheaper rent? move downtown into an apartment. If they Wanted to stay inside a duplex within class A+ neighborhood?
    (in which they did)  

    then pay the price, or another tennant will🤷

    You made the claim that your tenants were now "happy" to pay a $400 rent increase. No, they're not and its naive of you to think that way. And like the first person said about how the tenants are more likely stuck than happy, you just proved that point. They're not stuck as in "there are no other options", they're stuck as in "there are cheaper, crappier options but we'd have to pack up our entire lives and deal with the other expenses/headaches that come with moving so I guess we might as well just suffer with the increase". 

    There are landlords who are proud to own properties while offering their communities a nice and safe place to live (and enjoying the benefits of having someone else pay for your appreciating asset). And there are landlords who only care about maximizing profit and nothing else. I'm not saying you're one or the other, I don't even know you. But I do know our city needs a lot more of the first type. 

    That’s absolutely great and wonderful for the investors who are in the position to stabilize that!!!

    as of right now, I'm a 19 year old real estate investor with his first cash flowing duplex. 

    As a result I must Study the market and know what i’m worth. I Offered it to them at 10% below market with him paying utilities. he wanted it, so I screened him to verify he can afford it. If he didn't want it or can't afford it, I would have reward him with 60 days time to find another place, then find a new tenant that can pay what it is worth….  Any other sympathy is unfortunately just Poor Business Practice.  


    Thank you!!!


     "I would have reward him with 60 days time to find another place"

    You need to reflect. 

    you may think so, but other experienced investors think otherwise.

    as you said "There are landlords who are proud to own properties while offering their communities a nice and safe place to live (and enjoying the benefits of having someone else pay for your appreciating asset). And there are landlords who only care about maximizing profit and nothing else. I'm not saying you're one or the other, I don't even know you. But I do know our city needs a lot more of the first type.

    you clearly don't know me, which if I'm being quite honest with you has absolutely nothing to do with me. this is a property that is located in the village of Liverpool NY with a tenant paying beyond market rent,

    " If he doesn't want it or can't afford it, reward him with 60 days time to find another place, then find a new tenant that can pay what it is worth. "
     
    which I did, and he agreed to pay..................

    as I've stated to you before anything other is simply poor business practice. thank you for your input 



    0Reply
  • Elijah Berg
    OP
    Investor · Syracuse, NY · Member since 2023 · 26 posts · 16 votes
    1y
    Quote from @Anderson Banegas Cerrato:

    Elijah, this is pure fire, man! At 19, you’ve already mastered what most people spend years figuring out—turning determination into action and action into results. That 36% rent increase while keeping happy tenants shows how smart and intentional you are about building relationships, not just cash flow.

    I’m grinding to get my first deal and seeing your story gets me hyped! How did it feel walking into that closing room, knowing you were about to own your first investment property? That’s a moment I can’t wait to create for myself

     Hi anderon!

    Thank you so much for the praise as this hypes me up for my next purchase this year as a 20-year-old using my first brrrr and funds from my house hack HELOC to fund it!!!!

    during my initial first purchase at the closing room, I knew I had to get over this nervous feeling if I wanted to do 40 more properties to build my real estate empire so it was really easy for me! though everyone at the closing could not believe that I was only 19 years old and buying their first duplex it made me feel really special and and good knowing I was performing better than anyone near my age group.

    1Reply
    • Anderson Banegas Cerrato
      Investor · CA · Member since 2024 · 82 posts · 31 votes
      1y

      @Elijah Berg 

      Elijah, that’s incredible—you’re crushing it at 20! Using a HELOC from your house hack to fund your BRRRR is such a smart move, and it’s inspiring to see you already building momentum for your real estate empire.

      I love the mindset you had going into your first deal—pushing through those nerves and staying focused on the bigger picture. Out of curiosity, what was the biggest lesson you learned from that first duplex purchase? And how are you planning to scale from here to hit those 40 properties?

      Keep killing it—I can’t wait to see what you accomplish next! Let’s stay connected.

      0Reply
  • Elijah Berg
    OP
    Investor · Syracuse, NY · Member since 2023 · 26 posts · 16 votes
    1y

    i've also become a guest to the official real estate rookie podcast show episode # 465

    check me out on their episode here!  

    https://www.biggerpockets.com/blog/rookie-465

    1Reply
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