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