I almost have enough cash to buy a property outright. The owners would like to stay in the property and rent. Would it be a good idea to purchase the property with the cash I have and then offer them free rent to make up the difference for an agreed duration? Or would it be best to get a conventional loan and charge regular rent to cover the mortgage? The goal is actually to keep them in the house as I live overseas and I know they are good tenants and will take care of the house for a couple years until I return home.
See any flaws or have any advice?
Get a conventional loan and have them pay down your principal while you collect cash flow and don't have all of your cash tied up into the house. Just run all of your numbers and analyze the deal properly first to make sure it works.