Buying house with tenant inside that pay half the market rent

[Noyessie Hubert]

HI All,

State: New Jersey

Quick question. I have 4 identical units of property where all the units need a little work to be on top. 3 units are occupied and 2 of them are paying way below market rent. They are currently paying $1050 and the current market rent is $2000. As you can guess, they have been there for a very long time now ( almost 5 years as I heard ).  And one of them is paying $1600 on a month-to-month lease.

What will you do In this case? Should you evict them? should you try to negotiate a new lease with them? 

Just for more details:
- At the current listing price, my monthly payment on the property will be $6000. I'm using an FHA Loan. I may switch to a 5% conventional loan to avoid the risk of failing the self-sufficiency test. Still looking for one.

- the current rent will be around: $3700

So we will have a difference of $2300 + additional fees like garbage, cap expenditure, rehab loan for the 4 units ( around $350 per month ) and others. Let's say almost $3000.

Thanks for your help.