Englewood Enigma Buying a 2 family- Tenants remain

[Daniel Green]

I have a sales contract in and an accepted offer on a 2 family in Englewood.  I'd like to rehab each apartment.  I was told when negotiating with the sales agent that the seller would ensure that both apartments are vacant when we close.  So when I wrote up the contract (I'm a real estate agent) I put closing contingent on both apartments being vacant.  Now the seller has come back and says she can't agree to the tenants leaving.  There are a few things I'm thinking about:

- If the current tenants remain I figure I will increase their rent.  Current rent is $1700 per apartment.  I plan to increase this 20-25%.  They are 4 bedroom apartments and this is well within the range.

- I could offer the seller $3K per apartment additional to offer the tenants to move out before the closing.  

These are month to month tenants who pay in cash each month.  I was told that the current owner has given notices to the first floor tenants (not sure what notices these are) that the first floor tenant rips up in front of her so it sounds like the relationship is not the best.  Any ideas here? It would be a great cash flowing property if I can do some light rehab on the property and get it back on the market.  I'd like to rehab, rent and refinance a year out.  Thanks!