BRRRR w/current tenants

[Wes Waggoner]

I'm 100% this has been asked before, but can't find the exact scenario in the search. Looking at a 4plex (distressed seller) that cash flows very well the way it is with the current under-market-value rents. 3 of the 4 units have tenants. The vacant unit will need around $3-5K of rehab which should easily move the rent up ~20% (from $650 to $775-$800/mo). I could do a traditional rental purchase and finance right away, but that'll tie up ~$60K of capital. Preferably, I would pay cash, rehab all of the units, then get a lender to finance ~75% LTV which would get most of my capital back. I've only seen the one vacant unit, but I have to imagine it is the worst of the 4. Primarily the rehab would be pulling up carpets, installing LVP, paint, and potentially replacing kitchen countertops. 1) Suck it up and finance now, then refinance again at a later time after all units have been vacated--ties up capital for at least the length of the leases? 2) Pay cash, wait for leases to come up (<12 months), then non-renew/force move in order to rehab? 3) Try to get it all done at one time (ask the tenants to move their stuff out of the way temporarily and/or compensate them to stay at a hotel for 2 nights)? Appreciate any advice/wisdom,