They don't mind and would like to use that conversion. however, they are about to enter escrow and the seller countered with an Addendum stating that the house is sold As-is, they will not make any repairs, garage is unpermitted, and they require the buyer to use a licensed and bonded contractor to make repairs.  

Flavio, congrats on entering the world of real estate investing.

I do of course worry that there is a ceiling in the east end of the GTA; some of the due diligence I have done and also my experience in selling our home leads me to think that if affordability enters buyers' minds, they will either look further out of the city for dirt or buy lower entry point homes (e.g. condos, towns) closer to trendy areas.

What you have to do is provide in writing a notice ending their month-to-month lease and a request to enter into a new lease accepting any changes.

The former ownercan't possibly enter into any kind of business relationship with you on that property.

If new investors do not enter into this prepared to lose everything they have they should keep their money in a mattress.Risk is part of the fun, the adrenalin rush, in living life.

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@Ryan Sanderssandwich lease options  are two basic arrangements Arrangement one is between you and the seller, and you can enter into a lease option with the seller with rights to sublease and sub option,  because the arrangement is between you and Investor and you're not living in it as a tenant or owner occupant, you can have rent credits applied towards payments to receive an option price that is attractive.Arrangement two is between you and the tenant buyer, where you can enter into a lease and give them a ROFR, the ROFR can be separate from the lease, there can be a consideration fee for the ROFRI like reverse assignments where I assign my interest in my agreement with the tenant buyer to the seller, generally in the form of a note or deed of trust,  so there's only one closing between the owner and the tenant buyer Example house is worth 250 and I get an option price of 220 and sell it for 250, the difference being $30,000

Congrats on making the decision (at 23 years old nonetheless:) on entering REI!!!

I just realized I just entered into the underworld of black/grey postage market involving "uncancelled" and "gumless" stamps, where I've found these great discounts.