Rent to own / seller financed / unusual situation

[Eric Mcginn]

I really shouldn’t spend too much time on this because my offer very well simply be declined by the owner. But we do have rapport, so I figure it’s worth a try. 

Here’s the situation, we’ve rented here for 12 years from an old lady that lives an hour away. Her kids are interested in taking over the handful of rentals she has which is why this may all be for not. I’ve taken care of everything here, I never bother her. I’ve paid a week early for 12 years! She LOVES us. She hired someone to paint the house exterior when we told her our first baby was coming she was so excited. She says we’re the best tenants she’s ever had. We get a killer deal on rent. It was killer to begin with and I’ve been grateful for the 4% annual increase she does while prices sky rocket all around us. 

We love it here, but with the two babies it’s time for us to move. 

Our current rent is $2600 

I want to offer to pay $3000 for as long as she wants 1-15 years and then pay $600k 

My main question is whether that type of structure of offer makes sense legally or technically or practically. 

I’ve never done a seller finance deal and I want to make sure whatever I offer isn’t so unusual that her lawyer or advisor shuts it down right away. 

In terms of potential numbers I think I could convert the garage to an ADU and rent it for $2k and could rent the house for $4k especially if I added a bedroom

And then if I did those things it would also be worth about $1m so I’d gain equity, but I love the place so much I’d probably keep it forever. I know I should leave my emotions out of it haha. I do have 9 LTR and a GC license so I have some experience. 

Thanks for any advice or feedback on this potential offer I’ve been concocting.