Purchasing a multi unit with existing tenants

[Ryan Oldenhage]

I wanted to get your thoughts on a property I'm considering purchasing...

Cash flowing two-unit property that is currently rented with one long term tenant on the first floor (larger unit) and one tenant on the second floor that may be leaving.  Both are on month to month leases.  The first floor tenant has been there 15+ years and the unit certainly shows it.  Rent is under market for the first floor and less than the smaller, updated second floor.  The long term first floor tenants are disabled and the reason I even mention this is two fold...renovating the first floor unit would be intrusive to their way of life, however, there may be potential code violations.  Also, if I were to consider legally ending their lease after purchase, renovating and re-renting for market rents, it would be extremely difficult for them to find another apartment.  Investor wise, this would make the most sense but ethically/morally it would be a deal breaker for me.  I couldn't in good conscience essentially purchase the place, terminate their lease and put them on the street.  Maybe that answers my question...

The township does not require a CO inspection for a resale.  So maybe just look to purchase, fix any code issues and work with the current first floor tenants as is, until they decide to move (which may not happen based on their rental history)?  At the same time, as an investor I feel like tenants shouldn't determine your investment strategy.  Or am I over thinking this altogether?  Thoughts?