Buying a home from the owner passes

[Devyn Earls]

I may have the opportunity to purchase a house for half the cost 130-150k (300k ARV) provided I give the owner a lump sum payment & monthly payments until he dies.

We haven't dived into a deep discussion yet, but the terms are about 35-50k down and 10k/yr for 10 years. At the 10 year mark, he would be forced to move out. If he dies before then, the note is void and the house is mine. He's 70s, smokes & drinks daily for what it's worth and his wife passed a few years ago. He could go in 2 years and I could get the house for 70k, or he could last the 10 years and I'd be in it for 150k.

The contract I'd get drawn up would include regular maintenance, he'd have to continue paying the taxes on the property, etc. It's in a desirable neighborhood that only goes up in value.

The house itself needs about 30-40k in repairs, so it leaves about 100k left assuming the numbers don't change (which I know they will, but that's a huge number)

My goal for this would be a primary residence for myself, and my current house hack (less than 5 minutes away) would stay the same. I would move into that one and house hack it as well after some renovations, and I'd rent the master out in my current house and the garage.

I am curious if anyone else has encountered this situation and how it worked out for them, and if this is even worth it to begin with? If he survives the entire 10 years and the profit is only 70k in equity = 7k/yr, is that really worth it with the money I would have out of pocket? I would not need a loan to lend nor continue with the payments, so don't worry about me going broke.

Thanks for the advice in advance!