First time buyer. Found a good duplex but one unit is occupied

[Joshua Piche]

So I am looking to buy my first property  . I found a duplex the back unit is vacant but the main house is occupied and the current residents are paying half of what current market rates are at . I think this property has potential but with what the current rents are it just doesn’t make sense . Current tenants have been there 10 years and are a month to month lease . My question is how could I or what am I allowed to do to make this a win win scenario for both me and current tenants. Or would it be best to get a property that’s completely vacant . 

* property is under rent control *

[Chase Busick]

@Joshua Piche, yes I'd confirm their lease & you can get an estoppel agreement signed by all parties in order to confirm. 

you can do a brief pre-screening on them in order to see if you want to keep them on your state courts network if it's free. 

If you're trying to make it a win/win, can consider giving them notice that rent will increase in a month or 2, giving them time to either sign a new lease with you or find another place. It can be beneficial to have them stay & place the rent where it's realistically be in its current condition without doing any remodeling (which will save you expense, time, vacancy, holding costs, maintenance, marketing & leasing fees, etc.). I think this would be the better way, to keep making money rolling in. Sure it may be under market slightly but that's based on rewarding that they've been there for a time & don't have to bring it up to the max market rent condition.

This can be a time to strategize, if you can get records of the rent roll showing their on time payments that'd be great then ensure that the increase won't put them out or make them homeless. You can go through re-screening them to your standards if you want or at least confirm their employment/income w/ the increase in rent.