If the seller has children or a spouse that will inherit the property when they die, the tax basis in the property will step up to the current value for the heirs.

I have been married to my beautiful wife for 16 years and we have two great children.

Current living in Magnolia, TX due to being flooded out during hurricane Harvey - my wife and I have 2 children, and are hoping to build a business that will allow us to spend more time with our kids via passive income.

Since this is my first contract I want to know the best way to handle this while also helping the owner walk away with something to help her and her children move.

On their own, my children will bring up examples they see of people wasting their resources or taking advantage of their resources. 

He could have left a will naming his children or someone else or a trust  as the ones to inherit.

I also felt that the time frame wouldn't really matter because his children would inherit anyway. 

They had no children, so next of kin are two siblings. 

Doing our first flip in Scottsdale Arizona and the neighborhood is a mix of the residents that are not quite senior citizen but near or at retirement age and families with teenage to older children.

For example, I have rental properties in a D neighborhood and the 2 or 3 bedrooms are usually rented by families, with children.