About to close on first 4 plex, inheriting 3 late paying tenants

[Chris Rose]

I am about a week from closing on my first rental property, a 4 plex apartment with 1 vacant apartment and 3 apartments rented on a month by month lease. The current owner inherited the 4 plex from his dad after he passed away. The owner's dad was apparently an old school landlord who would take a tenant if he had a vacancy with little or no screening. The new owner has no estoppel agreements or prior leases on file (I don't think his dad used them). I requested the new owner have all tenants complete estoppel agreements so I would know where they all stand when I buy the building and take over. 

I get an email from my real estate agent today saying that: Tenant 1 is $150 behind because they had to buy school clothes, Tenant 2 is 2 months $900 behind, and Tenant 3 was behind but has paid up the owed $640. 

When I started the purchase process, all 4 units were leased, then after a couple weeks into the process, only 3 units. A couple weeks ago, the tenant that was 2 months behind was given a pay/quit letter but eventually paid up. Now 2 (and maybe the 3rd) tenants are behind. When my agent gave me this information today, I asked if the seller was going to handle his business or leave it for me to handle? The agent then spoke with the seller who stated that "he tries to work with his tenants as they don't always have it as easy as we do."

I was intending to remodel the vacant unit, raise the rent on it with the new tenant lease. I intended to get the 3 inherited tenants to sign a new 1 year lease keeping their rent rates the same as they have been, then as tenants move out, remodel again until I have all 4 units in good shape and the building in better shape. With every tenant either behind or just not paying, I may end up with 4 empty units right off the bat. It was my plan to keep enough units leased to cover the cost/expenses of the building while I complete renovations, but now it doesn't look like that may work out.

I know this is a long post and I appreciate you experienced landlords reading and giving me some newbie advice.

Thanks,

Chris