Inherited Section 8 Tenant- First Investment Property!

[Brad Jordan]

Good Evening!

I just closed on my first investment property. I purchased an REO. There is currently a tenant that is section 8. I met the tenant last night at the property. She is currently on a month to month lease. The house needs a bit of work. A few things were caused by her and her kids(two busted windows, a couple holes in dry wall, and disposal leaking). A few things are just in need of replacing which is paint and carpet. She has been in the house for 10+ years and it looks like original carpet and paint. She would like to stay and rent is paid 100% by the housing authority. Since she is month to month with a few kids I don't want to replace the carpet and paint for them to trash it and in two months give 30 day notice to move out! If I replace the carpet and paint should I have her sign a year lease or not replace the carpet and paint, leaving her on month to month? Any suggestions or advice??

Brad