Good value-add deal. Tenant challenge. Advice?

[Dori Arazi]

I just got access to an off market deal for $150K. Its a 1550 sqf duplex, looks like its in pretty bad shape on the outside. Its been cited by the city for siding repairs and yard neglect. Comps for equivalent properties in the area or in the high $300k. property is currently generating $1400 a month, though can easily generate $2800-$3000 with good repair (based on surrounding comps). Seller will not let me see the inside of the property, to "not disturb the tenants". It might be a full rehab + HVAC scenario for all I know. This would be an out of state investment, so there is an added challenge there. 

The issue is that this duplex is occupied by tenants who have been renting the place for many years. How does one handle a situation like this for a BRRR strategy?

Also, I don't have a super solid team set up in that location yet, which makes me somewhat nervous to jump into this level of unknown. 

Thoughts?

[Michaela G.]

I totally understand that the owner doesn't want to disturb the tenants.

Make a low-ball offer, based on expectations of full renovation of both units. Add high earnest money.  Make it subject to inspection of the property. 

That will show the seller that you're a serious buyer (high earnest money, instead of $ 500 or 1000). 

You tell him that if he doesn't like the low offer, that you'd be happy to renegotiate, if you can see that it doesn't need full renovation.