This takes all of the tile work and deed work out of it until you exercise the right to buy.

If they do not exercise the option you can always sell at that point potentially for more money. 

Almost made to feel this was an odd request and "Ordinarily, in all commercial leases, theres is a provision with respect to a renewal option that the tenant must exercise with in a stipulated period prior to the expiry of the lease.

Hey Maxim, fun exercise.

At the end of the primary term the building usually reverts back to you the land owner for free if the tenant does not exercise their lease option.No legal advice.   

Consequently, if the seller would like to receive a reasonable asking price (along with the with limited fees associated with lease options, etc), they may have to sacrifice owning a primary residence until the option to buy their property is exercised.  

The rest of the exercise is to offer what you can pay based upon the margin/profit you'll work for. 

On the other hand, if your buyers are serious about buying a home and want to have that "pride of ownership", you may have a winner.If your sellers are depending on the tenant exercising their option, you may want to educate them.

I am closing on a multi next week and I want to exercise the insurance market on pricing for insurance.

So that is a very good catch.I thought it was more of an exercise in explaining the value of hard money and didn't even think of asking her about her experience.Bottom line though is that I started using hard money after my first deal.