We are getting push back from the seller about creating a purchase agreement with our lawyer that they would then need to review with a lawyer.

You have no history of received rent payments to show an "implied agreement" that will hold up in court. --- You have only eviction option if tenants don't pay.3) WIth no lease, your only eviction option is 30-Day, Demand for Possession.

My Lawer was livid when he heard they tried to entrap me by calling the morning of the eviction and getting me to some agreement. 

It requires a lot more work, follow up, and it's necessary to have systems in place to support the tenant vetting, rent collection and creating lease agreements.

Review their management agreement.

Operating Agreement is probable, but do they need tax returns? 

It also is helpful to have a California LLC in case you ever sell that property and move into another state so that you do not need to form a new LLC altogether with new operating agreement, just re-register in the new state as a new foreign LLC.

When you buy,how do you protect your investment, other than the formal agreement? 

It also is helpful to have a California LLC in case you ever sell that property and move into another state so that you do not need to form a new LLC altogether with new operating agreement, just re-register in the new state as a new foreign LLC.

After getting a good amount of equity in the house for future HELOC funding, I was going to move out of it and use the property as a rental utilizing a lease option, or, rent to own agreement.