Use A TIC, the contract can stipulate that you are to take title as tenancy in common with an undisclosed principle. #1 is the most expensive way. #2 is done with the proper LLC set up and either the buyer or you can withdraw from the entity as a member, if the buyer steps out, they take the property with them, simply file a deed of conveyance after settlement.#3.

However, you can stipulate that loan payments to your partner may be executed by the partnership. 

I would like more on what they are and what are the stipulations to using them.What type properties are you looking for?

When we got into escrow, I told the title company the situation and the owner of the company stipulated to the seller that he would be holding back $3,500 from the net of the sale.

I have asked half a dozen times and it is a stipulation in the contract.He has a better buyer away, so I don't want to break contract over it. 

Writing into the contract that it's contingent upon a written agreement between you and the tenant on an acceptable move out after closing is fine, I would suggest finding a good local attorney to draft a stipulated judgement in that case and you may need to be ok with cutting them a check for a small cash for keys at move out.Other than that, cover yourself for any unforeseen circumstances.

Similarly, if you take 27% of 40% you arrive at 10.8%, so we split the difference and adjusted our offer by 10.4% from a income capitalization at market rent.While we have paid "goodwill" to owners who present properties which have been updated and/or are running at potential {meaning we've paid a little higher than our analysis indicated would be optimal} I do not believe in rewarding owners who present a mismanaged, poorly maintained property.Now, if you have a condition of sale which stipulates you must keep this tenants rent fixed, 66% below market for five years, simply take 66% of market rent times 60-months and deduct it from the purchase price. ;-)@Jim Costa:  It's a duplex, the bank/lender and their appraiser will relay of setting the valuation based upon comparative sales and not income capitalization.

What dose  the lease stipulate on such improvements?

Once I found the property that fit all my criteria, I asked my friend to write up a contract  saying that I would pay the tenants $X dollars if they moved out by a certain date, and further stipulated that the contract is void if I do not close on the house.

But then there's a mortgage that has some owner occupant stipulations.