We are planning to live in the owner's unit and tenants above have lease that is expiring mid 2024.

The type matters and their plan on acquisition and exit strategy.  

I’m planning to buy an investment home that is already rented.

Mind providing more clarity on the asset you are purchasing and the overall business plan with making it perform? 

They did give you info that they love your place, plan to stay forever, and accordingly you should increase the rent $250 per month if allowed by your local laws for the aggravation of dealing with them. 

We also plan to have a performance deed that will help protect me in the event he defaults and the property will be handed back to me.

I plan to buy, rehab and refinance.

Won’t reveal cash out plans but just go through purchase scenarios.

Will they also provide you with comprehensive tax planning? 

I am under contract for my second duplex, and am thinking it will be time for me to begin hiring out lawn care, as I do not plan to have means to transport equipment between properties or dedicate time to a low value task.