What I'd like to know is if the clause posted in the update lets them off the hook without penalty or if I am able to proceed with the sale. 

I will update this post on how that goes...Lesson learned: I need to stay on top of the whole closing process at any sight of miscommunication.

Most of the buildings I have looked at are in need of a small or medium update.

I want to update the kitchen too, so that would help.

I will keep you updated! 

Update the units- take care of the building and add value to what was a poorly managed situation.

Update the units- take care of the building and add value to what was a poorly managed situation.

Prioritize the essential updates, like the floors.

If they are a good tenant that takes care of the property, doesn't cause headache for you as a landlord, and still pays rent at a rate which gets you the return you are looking for, then I'd say keep it where it's at2) Look at your underwriting numbers - if you bought the property based on the current rents, and those rents get you the return you are looking for, then that is a great position to be in.3) Communicate your plan in advance to them - if you do decide to raise rents, then I'd communicate your plan in advance to them and give them ample time to decide and find another place if they aren't OK with the raised rents.

We are cash flowing 1k a month, with all units updated and occupied.