Let me be the first to say congrats!
Since no one is going to steal your deal, then you may want to reveal the city these properties are in so that someone who knows the area can lend their expertise.
My questions are:
Are rents in the area for similar homes 700-750 a month?
What are the tenant/landlord laws in your area?
Are you sure the properties only need 5k?
Will all the the purchasing and financing be in writing? (Sunday dinner tastes different when you eat with the person you owe a bunch of money to.)
For the inherited tenant I would put him on a lease for 1 year with a clause of raising rents at the end of the year.
I only have 1 rental and every time the tenants change the lease gets longer.
Thanks for the insight! And you can absolutely message me!
Congrats on having your first deal! Nice that it gives you two doors as well. Thinking back to when I used to rent, they were always raising rents a little bit with each new year. I didn't love it but it was only like $10-40/month and I loved living where I lived and I knew appreciation was in affect so it had to be done. Sounds like you could raise it quite a bit more than that but a small increase like that might not even be a big deal because it'll be a big deal for him to move too, rather than just paying the increase. You could also pitch that by you doing the improvements + appreciation, it's just par for the course. Congrats again!