Mold, Termites, and Tenanted..

[George Leeman]

Hi, I have a property under contract in florida for 6 units 400k at the moment, and recently found out that the place should really have a full gut and rehab for the most part. Its currently fully rented, but my handyman has never seen such bad mold in a place where people are living. It also has extensive termite damage. My handymans chest got tight from minutes of experiencing the mold, and the 2nd floor of the building recently had some shabby repairs to the flooring that makes me worried about liability.

The thing is, these units (currently rented at 750 I am told) should be rented for about 900 when the necessary updates are done. So there is room for some good equity if I can get it purchased and fixed for a reasonable price.

I have a new offer in at 300k instead of 400k, tho its not been accepted yet (the former offer was based off the realtor saying that only minor touchups were needed, which is anything but the truth. However I am out of state, so thats my downfall here) 

I am hoping to buy for around 300k and own it for around 400k with it being worth around 500k and rented for 850-900 per unit.

I am wondering if I should run a mile from this, or take a swing at getting the tenants out, gutting it, rehabbing it, and coming out ahead in equity?

My handyman can handle everything, but obviously he is not licensed to do a lot of the work, tho he may be able to work with a contractor to pull permits and I may be able to have plumbers/etc come in for what my handyman cant do. I am just worried that if the county was to come out and see the condition of the place, that I would have to go a far more expensive route.

I am uncertain what to do about this, I like the property a lot, and do not want to lose it. However, I have no experience with this type of extensive issues with a tenanted property. Im guessing I will have to pay the tenants a couple thousand to leave, provide a 60 day notice, and then spend easily 4 months getting it rehabbed/rented. 

Can anyone advise? I do have plenty of cash reserves at the moment, however I still dont want to spend all of them on only 6 units.

I am thinking I should get a quote from a licensed contractor to see what things are at worst, then have my own handyman do all he can do on his own, then maybe get some plumbing and electrical quotes from licensed individuals, and then let a contractor handle the rest if I feel overwhelmed. 

Please advise, any help is appreciated.