Nick,Without knowing the current value of the home its tough to tell you to refinance or not at this point. 

The property is a 6-unit building in Los Angeles.Given the significant difference in current rents vs. market rates, I'm looking for advice on how to legally and ethically approach raising the rents to reflect market value, should I decide to move forward with the purchase.Some additional context: even if I were to negotiate a better (reasonable) price and were to successfully evict a tenant who is 5 months behind on their rent and charge the market rent for that unit I'd still be -$600/month. 

How did you add value to the deal?

My best advice is to find someone who is doing what you want to do, and then offer to bring value to them (for "free") in return for mentorship, guidance, and knowledge. 

If you put yourself on title, then the County will reassess the value of the home and you will pay more in property taxes. 

Cash How did you add value to the deal?

AlabamaEffective Property Tax Rate (2019): 0.37%4Typical Home Value (2022): $189,9766Annual Taxes on Home Priced at State Typical Value: $702.9The current metro area population of Montgomery in 2023 is 374,000, a 1.91% increase from 2022.

Also, come resale time, the duplex would have a proven track record of producing income and has definable value, whereas a single family home is largely dependent on current market conditions and home buyer emotions and buyer pool at that given time

I do own one paid off rental with a value of $450,000 that brings in $2,100 a month.

There is a very large living room that I want to build walls and create bedrooms out of to add value to the home.