BRRRR when you have tenants

[Jeff Hudak]

He is the story. I am looking at a 4-plex that has 4 tenants paying low rents. Say 800 each. All of the units need to be updated about 8-10k each unit. By doing this I can increase the rents to comps in the area of about 900-950/mo. Purchase Price is around 205k and the ARV is 240-250k after doing the upgrades. I am on the fence with this project because I'm not sure how easy it will be to either:

1)See if the want to leave or stay for the Reno

2)Cash for Keys - what will this cost met

3)Will they be able to pay the increase in rent after Reno.

What are your thoughts?