Inheriting long lease on lower rent

[Mike Austin]

I just had my first ever offer accepted for a duplex that I planned to owner-occupy. I got a discount on the price because the property has been neglected and needs some rehab work. 

The property was listed on mls as having an active lease that ended on 07/2017 which I foolishly believed but when I received the actual lease which shows the tenant renewed until 07/2018. I'd have to inherit this tenant for 1.5yrs instead of the 7 months I was expecting. Their rent is 275$ under market and completely throws my numbers which I based on raising to market rent after rehab when the lease expired.

Assuming they're reliably paying rent, would it make sense to go ahead with my purchase, and keep them for the additional year? I'd lose a projected ~3300$ in rent increases but I would keep their side as-is without rehab and just work my occupied side & exterior. Am I missing something with this path?

Any thoughts would be appreciated since this is my first pass at this and I don't have any experience or much help through the purchase process.

Thanks BP!

[Kim Meredith Hampton]

Assuming it's in a good area and you are going to like where you live, I would go ahead and purchase the duplex.

It will take you a while to rehab your side because you will be living their. No expense on the other side until they vacate