Purchasing property with long term tenant under Market Value

[Stephen Friedman III]

Hi all, 

My first time posting and potential first time buying a property. Looking at buying a 2 unit Multi-family, and plan to live in the 1 bed unit and rent out the 3 bed. Currently, the one bed is vacant while the 3 bed is occupied. The tenant has been there 10+ years, is on a month to month lease, and paying $1450/month including utilities and garage parking. Market rent conservatively puts this at $2100 a month so they are well below market. What are my options? 

Right now I believe my options would be to:

• Put a vacancy contingency in contract/offer and then find a new tenant once it becomes mine
• Raise rent slowly up to market value (risk pissing off tenant right away, losing a stable 10 year tenant, etc)
• Raise rent right away to at or near market value (Definitely risk losing/pissing off tenant)
• Come to some agreement with tenant (repairs, parking, etc)

Will the tenants being there for 10+ years mean anything in regards to squatters rights? Just a random thought I had. Any advice is welcome. Also, how much can I ask listing agent? Am I allowed to ask to see lease, why they are so low, questions like that before I have made offer? I have been pre approved for financing.

Additonal info: 

Property is in Jersey City Heights neighborhood of Jersey City, NJ

I have my real estate license, but have not done any deals besides 1 apartment lease (got it through work as a side/adjacent type gig. Main job is in Construction Management/Real Estate Development, and I only 23)

Vacant 1 bed is on Zillow for $1850 currently. 

Asking price is $525,000

[Aaron K.]

So first off yes you are allowed to see the current lease and it would be a necessity for you to do so before purchasing.

You can ask the unit be delivered vacant but the seller might not go for that as it means a longer escrow and they are left high and dry if you back out of the deal.  I would not keep the rent the same or raise it slowly, you are investing not running a charity (covid means you might not do it right away, but still would not be a multi-year proposition)