are you refinancing the  existing mortgage or pulling cash out ? 

I also need to make sure that I honor existing leases for existing tenants.Any tips on my next steps in the process would be very appreciated.

Before we put a unit on the market, we usually give existing tenants an opportunity to move into the newly renovated units at the higher rent rate, if they can afford it, they often take us up on the offer and move into the nicer unit.

I would have him deed it over, reinstate his loan, and own it subject to his existing loan until you sell it.

Do I add the $15K to $30K-$40K rehab as an all in at $55K and pay the existing mortgage on the home?

Do I add the $15K to $30K-$40K rehab as an all in at $55K and pay the existing mortgage on the home?

Many seniors live on a fixed income, so you can't just push their existing rents as their benefits probably aren't keeping pace. 

Existing Tenant fills out "Add A Tenant Addendum" that spells out the process and requirements.2.

That is much cheaper than the minimum of $2,000 I have to pay just to swap out an existing gas furnace, assuming there are no alterations required for the duct-work and vent systems.$1,000 buys a LOT of insulation. 

If you find you're unable to get something right away due to your credit or income situation, you may still be able to acquire your first place creatively via a lease/option, seller financing or buying a place 'subject-to' the existing financing, plus there's always hard or private money however either of the last two would require having 'take-out' financing lined up in advance, which might be a stumbling block.