Keep in mind that loan positions can switch places with a subordination agreement, so just because it was recorded first doesn't always mean it's a first, and just because it was recorded last doesn't mean it's most junior.

If that is what your final agreement is.  

Feel free to reach out for a more detailed discussion, if you want.Section 35-9A-421Noncompliance with rental agreement; failure to pay rent.

Yes, 100% legal to ask and offer cash and come to an agreement.  100% illegal to do anything to force them to move, make their life uncomfortable etc... prior to lease end.  

I have a "gentleman's agreement" with my tenants since I know them all personally through the army and I know they're good people that would be good tenants.

And normally, the lawyer will help draft the operating agreement or partnership agreement.  

Make sure to inspect the property often and its incorporated in the lease agreement.

You could consider recording a memorandum of agreement but if you get that far (i.e., the seller is actually open to this) then you'd want to check with your attorney on that idea.

@Jordan Soto you can write any agreement you want into a lease.

Have some form or written agreement (it can be fairly simple) stating how they need to report their hours and the rate you will pay per hour.