Inheriting Tenants - Meth risk

[Rachael Camp]

Hi All, I'm going through the process of purchasing my first investment property. Right now I'm looking at an off market, FSBO deal. It's a duplex (top/bottom) for $100k, renting for $650/unit, built in 1920, and in an up and coming neighborhood (there are both boarded up homes in this area as well as extremely nice, recently renovated homes). The rent is under market and should be brought up to $800/unit. We are offering cash with the idea that once we close we will renovate and do a cash out refi in 6 months. I met the tenants who are both month to month. One of the tenants is an older couple who had their daughter staying with them when I went to look at the house. The daughter was very clearly using meth. The owner is allowing me to do a full inspection, where I would be sure to include a test for meth.

The owner does not care what I do with the house once I've purchased it but is not willing to go through the process of removing the tenants before we close.  He is willing to come down on price in exchange for me handling removing the tenants myself (from $105 to $100k), and this was a solution I brought to the table, not him. 

I'm concerned that because both tenants are long term they would be difficult to remove and I'd have to go through the eviction process.  Both tenants are extremely messy and have made changes to the home that seem to indicate they want to be there long term.  

I'm also concerned that although the house may test negative for meth, the daughter may use in the house between the time after inspection and when they leave the house. 

My main question is, although this house appears to cash flow well, is this too high risk and too much of a potential headache for a first time deal?

Thank you!