I'm tapping into the equity of one of them right now for some initial costs in building an assisted living home for the elderly, and I'm hoping to use the equity in the other to buy a 4-8plex depending on what it can get me.

Many of the times they are owned by elderly couples and motivated people and get you where you want to be sooner.  

Relative to surrounding areas, there are substantially fewer distressed owners, landlords, elderly couples, etc. who are motivated to sell.  

I can tell you in Dallas there have been criminal prosecution where lawyers helped their elderly clients to sell properties for pennies on the dollar.

I am trying to figure out what to do with a property and hoping someone has some advice. My mother owns a multi-family unit in CT (4 apartments). The property was purchased back in the late 60s and is paid off except ...

The firm I work at audits numerous low income housing projects and elderly housing facilities as well as preparing tax returns for these entities and other individuals with real estate in their portfolio, so I do have some experience in real estate accounting.

For example if they felt the owner ignored their maintenance requests, you may be able to start off on a better foot with them by assuring them you will take their requests seriously.I'd also consider that you may not want a vacant unit in the middle of winter, so if it were me, I'd probably spend the first few weeks getting a sense for these tenants, their issues, etc. and determine if you think they're going to bad-mouth the property/you to others.I guess as long as they seem like relatively reasonable people (i.e. not hostile), if you still want them to move I'd probably defer to giving them 90 days notice and basically tell them you're giving them more notice than you need to because you want to make sure they have enough time to move.But also tell them based on how much you paid for the property you absolutely need to raise the rent - it's not a question of your being a nice/mean guy, it's a question of making the #s work so you can afford the mortgage payment.I'd also consider searching out some community organizations and contact info for the Department of Elderly Affairs and anyone else who might assist older people in finding new living arrangements, and include that as a second page to the rent increase notice.A lot of questions like this depend on the specifics of the people involved, whether you can build a rapport, understand and possibly address their concerns, whether you think they're acting in good faith, etc.So it's hard to really give an exact answer but those are some thoughts.

To make a long story short the seller is elderly, has been in the home for 40 years, and will be moving out of the state in a couple months.

I am guessing but most homes with elderly owners require updating ... 

Apply this property's NOI to the market cap.Be careful with seller financing and the elderly.