Inheriting at tenant in my rental property, What am I supposed to do?

Inheriting tenants can be a good and bad thing. When you are conducting your due diligence, ask for a copy of a rent roll, leases, and of course view the interior of the property.

I have seen some existing owners of the property let the tenants go MTM because they knew they would be selling the property & didn't want to burden the new owner with old leases that rents are under market and the units needed extensive rehab. No way for you to make an intelligent decision on the purchase or your cash flow until you have or see these items.

As far as the existing tenants go, if they are on a MTM, you have no obligation to keep them. Always a good idea to check your states statutes on rental/landlord just to be sure. Every state is different. Most of the time you can just give them a 30 day notice of non-renewal. If they don't vacate, then you would need to begin eviction proceedings.

As a side note and something that usually gets overlooked, have the security deposits for the tenants in the closing documents. This way if there is anything after the fact, it is in writing and documented.