Contract for deed and lease option
Hi BP friends!
I'm considering purchasing a sfr that is currently rented. The tenants are trying to purchase from the landlord but are self employed and their co borrower is a pain in the ***. I know the tenants and their biz and I feel super comfortable w their ability to make payments. I am representing them in the purchase, the landlord is not represented.
Here is a thought I'm having: if I purchase the house the tenants can rent from me and buy the house from me in 2 years when their tax returns are completed in such a way that the bank will accept them. OR. I buy the house and they purchase from me on a contract for deed whenever they feel like doing so.
The house is cute and I could resell it easily in the future if I buy it for the right price.
Here's my question: I haven't done any contract for deed as an agent or a buyer or a seller. How are these things structured usually? Would a lease option be a better route? Or just draw up a contract w an attorney saying they will buy me out in 2 years. What would you recommend?
Thanks for your help!