Elderly Owner wants to stay in Multifamily purchase

[April Crossley]

Looking for some creative solutions. I looked at a 3 unit that is currently owner occupied by an elderly woman on the first floor. I made her an offer and she liked it but she asked me to make her another offer as if she would stay living in the property. She is currently 82 years old. The apartment she is living in is the largest one and would rent for $850/month if she wasn't there.  She does not owe anything on the property and states she does not want to hold financing -- although I don't think she fully understands this and when I meet with her again her daughter will be present to discuss. Obviously if I let her stay at no rent -- I would offer much less.  I feel bad having her stay and paying $850/mo because I feel she won't go for that as it is a lot for someone at her age in our area.   Has anyone ever purchased a building and allowed an owner occupant to stay? Or any creative solutions to this or how it can be structured differently?