I understand the tenant does not have any equity/cash in the first right of refusal "agreement"

What you want to be careful of is turn key companies that only sell to cash buyers or won't allow for a finance contingency in their purchase agreement.

My family are very nice people but don't know squat about executing agreements in RE.  

The tenants have always had a month-to-month agreement.

@Brian GibbonsHey, I'm fairly new to this online community but I was just wondering if I can legally Assign a lease option agreement for 3-5% of the purchase price to a tenant buyer? 

All you have to do is sign an indemnity agreement, if something goes wrong with the flip, they could go after your corp AND your personal assets.

It can be done but the courts don't like to do it and if the tenant fights it, the process can drag out for months.2) if the tenant is on a month to month then you or the current owner can give notice according to the written agreement that is in place.

I rented it out with a property manager and had a very bad experience - he only stayed 2 months and she let him out of the rental agreement.

Part of this agreement was also having them agree to a 10% realtor commission back to us.   

Have % listed on deed and have a simple JV agreement for each property.