Buy Back Option

[Andrew Bosworth]

I've targeting a property in my area that is soon to be listed at a Sheriff's Sale. Prior to the sale I want to make an offer to the current owners for the price of the outstanding debt and property taxes. With the sale I would also propose to them a rental/lease agreement as well as a buy back option. To me this seems like a win-win for both parties - I purchase a property at significant discount with instant equity and healthy cash flow, while they get to remain in their property.

Am I missing something? Would you include the buy back option, or simply rent it to them? What experience do you have with this type of purchase agreement?