@Justin A. This looks like a BRRRR deal where you're investing $100K and you'll be leaving $80K in the deal post-refi. Your cash on cash return looks low at 3.4% and your cash flow for $295 per month is pretty thin. For a $100K downpayment, these returns look a bit underwhelming. Depending on your investment criteria, I would be looking for a much higher return on this type of downpayment.
@Justin A. If you're keeping the tenants, keep the rent stable for the first year. During that year, you can improve the property. When you're done with the improvements you can let the tenants know you'll be increasing the rate by whatever the amount is at the end of the lease term.
If the tenants want to stay in the property, they will probably pay the higher rent. If they can't afford the higher rent or don't want to stay, then you've given them a heads up and they'll leave when the lease ends.