Chris will complete a detailed bid for the renovation when he goes next weekend.I ran the rental analysis report based upon the following figures (which can be amended and rerun after our negotiations and a more accurate rehab estimate):purchase price of $50,000rehab estimate of $30,000occupancy estimate of $1600/monthno vacancy rate accounted for, as I projected a 30% occupancy rate based upon our first modelno variable expenses accounted for in first year, as I included those in the rehab budgetI'm going to go ahead and run/attach a second report with a scenario based upon a $65,000 purchase price in case our initial offer is not accepted.

But the operating agreement is the part you can get some help on, both to make sure you understand it and that it's tailored to any special needs you may have (and you may not have any yet....you can always amend it later).  

If so, if all other terms remain the same, should I create an amendment to the Purchase and Sale Agreement or create a new contract (Novation?).

At this point it sounds like the best course of action would be to leave the lease alone unless the tenants specifically ask for it to be changed or amended.

@Mike D'Arrigo After some digging, it looks like a recent change that was enforced 3/2020. https://www.fairlanehomeskc.co... go all the way down to item (20) and the amendment (5) - it mentions the restrictions and when they voted. 

Despite this, the treatment of an amended return is a matter of administrative discretion (Fayeghi, 211 F.3d 504 (9th Cir. 2000)).

Apply to any person who engages in such activity on behalf of a corporation or governmental body, to acquire easements, rights-of-way, leases, permits and licenses, including any and all amendments thereto, and other similar interests in real estate, for the purpose of, or facilities related to, transportation, communication services, cable lines, utilities, pipelines, or oil, gas, and petroleum products;6.

From my Operating agreement of Wy LLC, there is a section saying that ( Estate Planning Transfer)  " If both Members die simultaneously or upon the death of the surviving Member the entire business Membership interest shall be transferred to the (trust) dated on xxxx. aslo there is another section ( Amendment)  '        ''This Operating Agreement may be amended or modified from time to time only by a written instrument adopted by all the Members and Managers and the Company and executed by all the Members, Managers and the Company.''

9/16/22 Update:Today at 9 AM I met with my partners and lawyer to go over the Amended LLC Operating Agreement in which I am managing partner as I own a majority stake.

They likely have ideas on how to approach best with tenant and amend the lease.