What would you do in this BRRRR situation?

[Ryan Cooley]

I need some guidance! 

I am buying 3 duplexes in Sierra Vista, Arizona, which is just south of Tucson. Each unit is a 3/1. 

I am buying with hard money @ 15% down, 13.5% interest rate at a $295k purchase price. 

After 30 days (when leases are up), I will give tenants the option to stay in the unit and pay $700 (currently each paying $550), or vacate. If they vacate, I will spend 10-20 days putting in vinyl floors & paint, then fill the units for $725/mo. 

My hope is that each duplex will then appraise for $130k+. At which point I can refinance @ 75% to pull out my initial investment. 

To ensure I get the highest appraisal, would you vacate all the units and rehab them, or just raise the rents and the tenants will stay?