A residential home, already divided into duplex and has 2 current tenants  (one's lease is until 3/31/18 and the other is 5/1/18). 

@Byron BohlsenI make all my tenants get renters insurance per the lease paragraph and  I tell them: " file the claim and have the adjuster check the door for damage as well. " Renters insurance is about $150 per year. 

Rent is $1950 (we just increased it a couple of months ago when the lease was renewed), and we've had only a single tenant.  

Now I need a lease for them to sign.

The plan is to fix one unit, rent it and move into the other one in 6 -8 months, once my lease is done here.

When our lease expires in May, we would like to buy a duplex in the Minneapolis-St.

If you don’t mind me asking, how much will you be leasing it for?

I didn't read this to ensure its accuracy but it certainly looks to be from a credible source. https://www.irs.gov/pub/irs-utl/33-Real%20Estate%2...Cliff Notes:Real Estate Professional Qualification • Material participation in each specific rental • Material participation in separate Real Property Trade or business • 50% rule • 750 hours rule • 5% ownership ruleReal Estate Trade or Business Defined IRC Sec. 469(c)(7)(C) Any Real Property: • Development or redevelopment; • Construction or reconstruction; • Acquisition and/or conversion; • Rental Activity that is not a Passive Activity; • Property management; • Brokerage activities.Example 1: Laura owns 5% or more of a real estate sales office • Works full time as a broker • She owns 3 rental properties and: • She finds the tenants; • Approves tenants and leases; • Approves and oversees repairs & improvements • Net rental losses are $31,000 and her modified AGI is $160,000 before the losses • Deduct the full $31,000 in the current tax yearExample 2: John acquires old homes and contracts 3rd parties to renovate and ready for resale.

Tenant’s lease ends 12/31/17.

Is there a lease signed?