Zero Leases on 28 units. Is that good or bad?

[Abad Marroquin]

I am negotiating 14 duplexes and an empty lot (where there was another duplex). Most of them are 2/1. The real state agent says there is no leases on any of the tenants. Apparently the owner neglected on the Property Manager and let him do whatever he wanted. He just sends him a check avery month.  The worst case scenario I am imagining is that all tenants leave the day I close on this property. If this is the case, I should be able to cover all expenses for a few months until I rent them all out. The properties seem to be distressed. All 28 apartments have window units. I got a quote of $4k for each unit to install Central air. I am walking the properties on Monday and will have a better idea of the inside. If updated rents could go up $200 on half of the units and up to $150 on the rest. All duplexes have brick siding. I have the rent roll and when do the calculation it yields a negative $500 a month.   If I update these units I should be depositing in my pocket at least $2000 a month.  What do you thing about the fact that there is no lease on any of the current tenants? Thank you for your help in advance!

[Chris Masons]

This could be a blessing in disguise, especially if you want to increase rent immediately after taking over the building....

If they had year leases and rents were under market you would need to wait and basically be stuck until lease expiration.

Chris