I am considering buying a 4plex in California. I will not be living there.The current tenants are month to month, however the rents they pay are way below market.
Each of the four currently pays $1000. Going rate on that street is $1525 for a 2bd2ba (this bldg has 2bd 1.5ba only).
I could never make the pmt at $4000/mo income, I am planning to raise rents at $1300 each.
My real estate agent is suggesting a 62 day escrow, giving 60 day notice to the renters so at the end of escrow everything will be vacated and I will start fresh.
That prospect is kind of scary...besides having all units empty for at least 1 month, I will have to incur paint and carpet cleaning on all 4 units...my questions:
1. Is there any way to write a contingency to have the current owner raise rents effetive before close of escrow? That's a lot, from $1000 to $1300 (30%...)
2. How can I make a deal and give tenants a choice; 60 day notice of increase vs 60 day notice to vacate? Is this legal?
Your expert help is appreciated,
sandao
Each of the four currently pays $1000. Going rate on that street is $1525 for a 2bd2ba (this bldg has 2bd 1.5ba only).
I could never make the pmt at $4000/mo income, I am planning to raise rents at $1300 each.
My real estate agent is suggesting a 62 day escrow, giving 60 day notice to the renters so at the end of escrow everything will be vacated and I will start fresh.
That prospect is kind of scary...besides having all units empty for at least 1 month, I will have to incur paint and carpet cleaning on all 4 units...my questions:
1. Is there any way to write a contingency to have the current owner raise rents effetive before close of escrow? That's a lot, from $1000 to $1300 (30%...)
2. How can I make a deal and give tenants a choice; 60 day notice of increase vs 60 day notice to vacate? Is this legal?
Your expert help is appreciated,
sandao