We inherited a tenant

[Antoine Philidor]

We took the plunge and through a 203K loan was able to buy our very first property. When we first visited (July 2023) the duplex, the previous owner told us that the tenants (older couple with one of them being a retired disabled veteran) had been there for 20+ years, and they had not renewed their lease. We were happy about that news because the rent the tenants were paying was below what the market suggested by $600. Offer was placed, and accepted, and we now had to wait for the 203K process. By the time the loan process was completed (September 2023), we are now being told that during the filing of paperwork 203K a lease was signed. The new lease expires in July of 2024. 

The duplex needs major work (removal of chimneys, siding, roof damage, HVAC, etc...) , hence the 203K. One side is better than the other. The previous owner did the bare minimum for the home. Work for the least issues side of the duplex should start next week. Trying not to break the lease, we approached the tenants about them swapping sides, and was met with a no. The side with the tenant needs a total gut job. The contractor refuses to work on the worst side with people living in there. With us being new, we are unsure what to do. We honesty need them to move, but I sense this is going to be a battle. Especially since they have been there for 20+ years. 

This 86 year old home (our investment) needs repairs. 

Suggestions are welcomed.