Buying a rental property
What options does the buyer have of a rental property (duplex) that currently has a tenant? I understand and would never expect a family to move immediately due to a new owner of the property, but this property would be an advanced cosmetic rehab involving new appliances, flooring, cabinetry, and obviously I would like to do all of this prior to having it rented. Any knowledge on the matter is appreciated.
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Sounds like this is your first purchase? Don't forget the option to leave the current tenants in place and collect that cash flow without investing a significant amount in a costly rehab.
Work on the vacant unit, get it rented for a market rate, and take stock of what you learn. You may be able to increase the rent a bit on the existing tenant to improve your situation simply by cleaning up the common areas.
Analyze it, how much would you have to spend renovating the unit that is currently occupied? It sounds like you could be spending upwards $15k on this rehab with cabinets and appliances etc, but how much will that increase rent? $100, $300 a month? That means 4 to 12 years to recoup your spend and break even when you could have increased rent $75/month from the start with no extra cash out of pocket. Then wait until they decide to move before you renovate.