This was the most complicated aspect of the paperwork.

@David Krulac boy your tax sales are sure complicated .

Cons are that they are more likely to die in the unit or otherwise complicate your life if they are alone.

That's what complicates the financing issues, looking in the wrong area.

It can complicate the exit strategy, especially if one or both of you wish to 1031 Exchange and go different directions.

Mold is not too complicated.

I know this topic has been posted in the past. Just would like some input from people who do this stuff all the time.

We are buying our first propertys;Two duplexs. I would like to set up an LLC for a holding...

Put the property in an LLC having the parties transfer interests over a schedule ultimately to a buy out by your buyer, the owner is working with you so that's an option, but, it is complicated in setting up, easy for some of us, not for everyone, I'd do it.Buy it sub-2 and do your option.You could also do your option and have a sandwich lease (yuk) and your buyer could do a purchase contract to purchase your option at a later date, say a year off at a lower price determined from the pay off amount.

I would not ask the seller to obtain a written lease at this point with the tenants, it would complicate the matter.

It complicates the foreclosure process, not to the point that a lender can't secure the collateral, but it can and does add time and administrative expense.