5 plex condo conversion or reno to increase rental returns?

[Micah Shelton]

I found a 5 plex in the Portland Metro area that could use some TLC. It is in a very desirable neighborhood and would be great as condos or an updated rental property. At present I think I can get the property for around 1.125k and it would take only 60k to renovate the property (for a rental). The tenants are all month-month and are aware of a future buyers intentions. The current rents are way under value at a total of $2400 and based on current values would increase to over 8k? 

Option 2 is to completely renovate and convert into condos and individually sell the units. This option would potentially net us around 300k but a substantial amount of permits and work to pull it off...

Thoughts on either option? Anyone interested in putting up $300,000 for the purchase and I will fund the renovation? Then refi it and pay you back?

@Jay Hinrichs  

[Steve Moody]

Originally posted by @Micah Shelton:

If the are month to month can't you just give them notice with no implication?

 Nope, you have to pay them moving fees. Just build it in to the costs and evict, or better yet have a contingency on closing that all units are vacant.