Also, if we do agree to mutually terminated the lease, should I have them sign a lease termination form with certain stipulations?  

When someone engages in a seller financing transaction, what are the standard stipulations? 

There are some "stipulations" on what the LL must do to continue the process, but it does have the advantage of allowing me to recover as much as possible when I can.

Below is info I found on a lawyer's  website:Property is Being Sold Subject to HUD Guidelines 24 CFR 206.125This property is a Fannie Mae Reverse Mortgage REO.The code above allows an heir to purchase the property at 95% of the listed price.Other stipulations of this type of property include: Property cannot be sold below appraised value (LIST PRICE)No mediationNo electronic signaturesNo repairs, “AS IS AT TIME OF CLOSING”No buyer closing costs paid by seller are allowed on the HUDBuyer pays HOA Doc & Transfer FeeNo utilities are on.

I'm looking to finance one and get it to a brrrr myself just running into financing stipulations due to lack of equity in my FHA loan on my 4plex.

So along with offering an option fee to your renter buyer equal to more than what you paid for it, rent equal to more than what you're paying, would you also stipulate they pay however much you've agreed to pay for repairs or more also?

If they pay prior to the writ being filed, have the attorney do whats called a stipulation; this means that if they can pay eveything, but if they miss a payment in the future, the eviction will continue again exactly where it left off.

The triplex max loan amount before it becomes a jumbo loan is $984,525 dependent on your county.Most lenders also have a stipulation of at least 20% - 25% down on conventional loans on multi family properties.For a low down payment your best bet is going FHA and keeping the loan under $984,525 as long as you intend to owner occupy.

My insurance agent (Allstate) insists that tenants have it and it's stipulated in the lease agreement. 

The loan stipulates that you occupy the property within 60 days.