Just acquired a property with tenants, evaluate and questions!

[Michael Hoss]

Hi everyone, 

1st of all thank you for your input.

I just acquired a 1978 3-2-2 house in a hot area of DFW worth about 140-145K for $114K in Cash after closing.

Property comes with tenants paying $1080/month with 2 year lease ending June 2017

Tax/year is $2800

Insurance/year  $1000

Maintenance Expenses allocated about $1500/year

Rent is a bit low for this hot area, should be $1200, can I offer the renters $1000K and ask them to break the lease and get out so i can rehab for less than 5K and place the property on the market for 140K? Is this even possible and what do you think is a fair amount to offer?

Or keep the renters until lease is up in 2 years, no loan, keep the cash flow (cash investment stuck in property until lease is up?

Or refinance property on a 30 or 15 year? and wait till the lease is up and sell for market price?

Please evaluate this deal, I am used to buy low, fix and flip for 15k to 28K profit in 2 months, this is my 1st property with renters in place.