This transaction is considered an increased risk transaction.

The goal is often common as to buy one at below market price with an opportunity to add value, raise rents, reduce expenses (increase NOI/Reposition it) and sell (or re-fi) within 5-7 years based on loan terms and exit strategy.

If so do I increase the rent to the current market rent?

If they are current is there room to increase after the Rehab is complete?

This night increase your chances the person won't redeem and you will own the property completely.I he won't pay rent then you will likely need to file the ejectment.

I wanted ask you about the rent increase.

Not done yet.. you need to figure out the strength of the lease.. absolute/true NNN is the best.. years till expiry, how new the building and yearly increases impact how close to the market cap rate the building should be..

I am toying with the idea of trying to get into a real estate office as a realtor in order to increase my knowledge of how things work so I can pursue my goal of having 40 units.  

If you do purchase the property then you'll probably want to give the tenants a decent advanced notice of the intended rent increase so they aren't sticker shocked at renewal.

I have a 7 unit apartment complex that has a vacant 450 sq ft space between two existing units that I intend to convert into storage as a way to better serve tenants and force appreciation thru increased NOI.