How to buy from Grandpa?

[Garrett H.]

Hey, Everyone. I'm looking for advice on purchasing a SFH rental from my grandparents...

Backstory: My grandparents have owned a couple of rentals in rural mid-Michigan (where I grew up and the majority of my family currently lives) for 20+ years now, but are ready to divest; I'm interested in buying one of them. They don't necessarily need a lump sum right now, but to maintain some monthly income.

It's a 3/1 SFH built in the mid-1900s set on 4 acres, in good condition but could be modernized a bit, most likely going to be priced around $60k - $65k. Has a solid rental history; currently occupied by single male paying $750/month. He's lived there 10 years with no issues and doesn't plan on leaving anytime soon.

The intent of this post is to get your opinions on approaching my grandparents and structuring the deal, and not as much on analyzing the specifics that I don't yet have (to be hashed out after Thanksgiving dinner). To me, this seems like an opportunity to use seller financing to appease both parties and get ahold of my first rental property. Any suggestions on financing, terms, minimizing taxes for either party, words of caution, etc., would be greatly appreciated. I'm all ears.  

[Amy A.]

Don't do it.  I invested with my grandfather and it was a nightmare!  Even though I worked really hard and he made money, some of my relatives were jealous and spread rumors that I was somehow taking advantage of him.   There has been a big rift in our family.  Even my grandfather became convinced that I must have done something wrong (he was starting to get a bit senile).  We made amends before he died last year, but the pain will always be there.  Ask your grandfather for advice, he'll be flattered that you understand how wise he is, and then go buy something on your own.