Need Opinion,First house-hack,Section 8 Tenant!

[Joshua Logan]

Hi everyone My name is josh (20 yrs old) and I am newer to real estate investing. I am under contract with a duplex set to close in the next 2 weeks That I am going to house hack. I bought the property for 230,000 with 5% conventional loan.

There is a long term section 8 tenant of 14 years living in the upstairs unit (2 bed, 1 bath, 600sqf) That brings in 1,200 a month with my monthly payment being 2,100. 

My plan- I will be living in the bottom unit and renovating it as i live in it to add value to the property. I want to live in it for a year and go buy another. I don't have a lot of capitol to go and put 20% down on another property in a year so what i would like others opinion on is that the upstairs unit needs renovating and if i do renovate it i can refinance and pull the equity out of the house to buy another. the tenants lease ends in feb. next year and will go up another 100$ and would like to stay, the property makes good numbers with it being the way it is and will cashflow even if i do nothing and put a tenant in the unit i am in after a year but then I most likely wont have enough capitol for another property. Is there a way to fix the unit with the tenant still in it? Do I just fix it up after their lease is up and wish them the best of luck? Stuck on what I should do And would like others opinions and expertise.

Thank You for reading and helping!