Purchasing multi unit with tenants

[Nick P.]

So I'm looking to purchase a triplex right now. All of the units are occupied. The rents are much lower than what I will need them to be post renovation. They are currently month to month. What steps should I go about doing this?

[Joe Fraga]

1st things 1st. Run the numbers. Is it going to make sense after the upgrades? Will it cashflow? Check other like units in the area and see what it will potentially rent for post renovation. Be ready for a fight from tenants that don't want to give up their low rent. If you do move forward ensure the leases are all legit and get estoppel certifications for each tenant.