Moral dilemma? Existing tenant

[Roger S.]

Hi guys.  We have the opportunity to purchase a house at a very good price.  It is currently occupied by a 50's aged widow.   She pays about $350 UNDER current market rates, the rent has not been raised in 4 years.   The house needs nothing now, and very little if she were to move out.

At my banks current terms, and purchase price of 60k, it would be a few bucks negative cash flow at her current rental rate.   But I know there is nowhere else she can go and be able to rent at the price she is paying.   I'm torn.   My wife says, if we cant buy this house at this price and deal with the tenant, then we don't need to be landlords.    This would be our 10th rental.

I think I might tell her that she is way under market rates, give her 3 months and raise it 100 bucks and then another 100 in 6 more months.  Gives her time to adjust and if need be find another place.  She is on month to month basis now. 

There is fierce competition to buy rentals in our town , and we have the inside track on this one, no one else knows it's for sale.

WWBPD?   ( What Would Bigger Pockets Do?)   LOL.