Thread: Rent Increase
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Old 05-15-2014, 11:05 AM   #18
photon
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Quote:
Originally Posted by ken0042 View Post
They could also be adjusting the rent to cover the mortgage they are paying. If the previous owner had the place for 6-10 years, $750 might have covered their mortgage. However with the new sale price, $750 likely wouldn't cover it unless they had a huge down payment.

I do agree that it sucks though.
Yup, I actually did this once when I bought a couple of 4plexes, the rents were waaay below market and covered the guy's mortgage I'm sure, but there was no way I could afford it at those rents. It wasn't double, but it was 50% or so. I felt bad.

All the tenants assumed the rents were going to go way up, they knew they were getting a sweet deal.

Only a few moved out as a result.
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