Purchasing a home from an owner and they become a tenant

[Allen Collier]

I have an opportunity to purchase a home from a woman who wishes to remain in the home and lease it from me. Has anyone done this? What are some stipulations you place in the lease. Some things I was considering was: 1. They sign a longer term lease. 2. They remain responsible for maintenance and repairs for one year. Anyone have an thoughts? Thanks!!

[Thomas S.]

Use a standard M2M lease and charge her full market rent or higher. You do not want to be tied into a long lease encase she turns out to be a nut job. If you have the skill set to operate strictly as a business you may be OK otherwise don't do it.