Taking Over Tenant Lease With Current Rent Below Market Value

[Travis Zappia]

I am in need of some advice. I recently came across a deal the below deal and want to get some advice from members of BP to find out if you would do the deal or not:

• Home is already occupied and has a dream family in the home. They have been there for 4 years and the home is in amazing condition. When viewing the home tonight the family was there and when asked if they planned to stay they said they would love to stay in the home
• Asking Price For Home: $144k
• Home is listed as a 2/2 but I found that it is actually a 3/2 with two master bedrooms
• All appliances and rooms were in great shape with hard surfaces throughout home
• Current tenant is renting at $1k/month and has a lease that ends 4/30
• Comps for rental homes in the neighborhood are $1200, so the tenant is currently paying well below market rents
• Home currently has a Property Manager managing it as the homeowner lives in Spain and is trying to get rid of the property

Questions I have (and I know you will have to put a disclaimer because these are some legal questions but would appreciate feedback)

1. Would you do this deal?
2. Can I terminate the Property Manager immediately if I purchase the home?
3. Can I get the tenants to immediately sign a new lease if I were to purchase the home? If so, what would you recommend the updated lease say? What should I increase the rent to as I wouldn't want to raise it too much and lose a dream tenant?

Any and all help would be much appreciated!