Screen Existing Tenants?

[Carl Rowles]

This is my first BP Forum post - please be gentle! 

Looking to buy our first invesment property. One we're looking at is a multi-family duplex. Tenants have been there for 7 and 10 years respectively, but rent is is about $350 under market value. They're on month-to-month leases. How would you proceed in this situation if you were to pursue the rental? I still have to see what's happening with utilities, but right now it would cashflow anywhere from $150-$300 (depending on the loan type and DP we select) with a CoC ROI between 9.9%-10.8% (lower than some other options we're looking at, but it already has tenants...)

Thoughts?