First 4 family apartment building

[Angello Campbell]

Good Evening Bigger Pockets,

I am in the process of closing (Nov. 13) on my first multi family apartment building and I couldn’t be more excited and nervous at the same time. The building is a 4 unit 2BD 2BA and 3/4 units are currently being rented. I am working with an agent that is wet behind the ears when it comes to multi-Family. It seems like I’m the one doing all the suggestions and don’t get me wrong she is definitely following up and getting me the answers. The problem is with this being my first multi family I don’t feel like I’m crossing my “T” or dotting my “i”. Is there any insight that an experienced investor on here would like to suggest. I’m all ears. 

Inspection came back with minor cosmetic repairs and appraisal was conducted today. When I take ownership, will I need to have all new leases signed? Can I raise the tenants rent since they are below market? What obligation do I have to the tenants? This will be an out of state property since it’s in Illinois and I live in Northern Virginia. I will definitely be using a management company, of which there is already one in place. 

Any insight would be greatly appreciated. 

Thank you. 

[Brie Schmidt]

@Angello Campbell

Leases transfer to you at closing.  You are required by law to honor them and the terms.  So you do not need to sign new leases and you cannot change the terms.  Is the property in Chicago or cook county?