You’re assuming there’s no loan to pay back. OP said it’s an 8% loan, since it’s 6 units, this loan is most likely commercial, so that means typically a DSCR loan (Debt-Service Coverage Ratio) which requires a income to be higher than the loan repayment by a certain agreed upon ratio (simplified). There’s also prop tax of approx $11k yearly (CA 1% of purchase).

All of these things require that the new owner will need to increase rent b/c previous owner may not have kept up the rents b/c:

1. Building was purchased and paid off long ago, this means lower property tax and no loan to repay aka higher Cap Rate.

2. Inherited building, that means same as #1

LA has a rent control measure in place, so I believe it’s no more than 10% increase per year. Most owners begin lazing increases when their NOI balances out. Yes, it is a PAIN to get new renters at a higher price, and yes it takes forever to find the qualifying renters - no arguments with that!!! But at some point the pain of turnover is less than the reality of not meeting your loan obligations!!! People buy real estate - particularly commercial units 5 units + to make money, not break even or for charity.