Lease option buy-out, and unaccounted tenant
I have, what seems to be, a great starter opportunity. This will be my first large deal, so I'm scared, to say the least.
Property info:
- Off-market
- 3/1
- ARV ~$90k
- Reno Est. = $30k
- Cash price $32k
- Old Singlewide on the additional acreage (salvageable, but not worth the effort)
Pros:
- livable (two current tenants)
- additional septic/utilities could be additional income (ADU)
Cons
- one previous tenant passed away in the home
Here's the kicker, at least to me, the current owner is under a lease option contract with the current tenant. The tenant is the one trying to sell the house, which is technically similar to a wholesale deal. They are contracted to purchase at $X, and they want to sell at $XX.
I've never heard of anyone doing this, so I'm curious if this is something that's legal?
To add to the complexity, there's a retired lady living in the house (a friend of the lady that died in the home), who isn't listed in the lease. This scares me a bit, in that she might could pose a little hiccup in getting her out. I have no reason to believe she'll be an issue, it just bothers me.
So, all that said, what's your advice?