Re-position under a Master Lease?

[Bernie Huckestein]

Hello BP, looking for thoughts on structuring a master lease...here is the situation

Have a potential on 16 unit multi  --  this multi needs some significant work (although mostly cosmetic, looks like a dumb but it is actually a hidden gem).  The current owner 80+ wants out; however, also wants too much money based on the fact that occupancy is 30%.  The property has always been self-managed, he has not had the energy to fill nor are the ones he has great.   In truth the units (all 2/1) I have an average of $3,250 updates to each unit required to maximize rents.  Other significant update items are outside the building...paving / curb appeal.

If I can position a Master Lease (with ultimate purchase price (so really Master Lease / Option),  the flexibility that provides could allow me to pay a little more; however, even without putting initial money up for the purchase I will be investing rehab / re-position monies.

So my question:  is this fairly standard with a Master Lease?  With the right documentation/agreement I assume I would be able to lock it down even though when it comes time to execute on the option that strike price agreed upon upfront will be 50 or 60% of the actual re-positioned value.  

I suppose this could happen with any seller regardless but I am also concerned given his age and ill health, what if at the time of purchase his interest in in probate or held by surviving family?  I won't do it unless I am sure everything is iron clad and will not be questioned or delayed in any way...there always seem to be issues with family and estates

Thoughts?

Thanks, b