If the property has appreciated & has good equity perhaps consider (alternately) cash out refi on existing property to fund new acquisition & keep the existing property as well - assuming both have positive cash flow and are in up & coming areas.

A capital expenditure typically either increases the value of an existing asset or adds an entirely new asset.

The seller owned the properties since 2016 and never did any rent increases on existing customers and his market rates were below market.

The seller owned the properties since 2016 and never did any rent increases on existing customers and his market rates were below market.

My concern is always the potential liability that exists when dealing as a direct buyer while I hold a real estate license.

Hi Guy,You could start with the two empty units, and when they are done offer them to existing renters at market rent.If you get takers, you have automatically emptied (and filled) two units without taking a financial hit.Time to turn the units depends on how much renovation you will do. 

There are no existing liens on the property.

You do need to check turnkey providers' work, verify the numbers, and frankly, sometimes even make sure the property exists at all.

If you either don't have the bandwidth or still feel like you're just not sure, consider a turnkey company as a way to tap into an existing, proven network while also having a mentor to provide some guardrails for your first deal.

Oddly enough, they have approved my big ask each time I've brought in a new tenant or requested a rent increase for an existing tenant.