Owner financing for seller who wants to stay in their house

[Braden Smith]

I am in talks with an off market seller that wants to sell the property, but would like to be able to stay in the house. It is an older gentleman that is not wanting to have to deal with the repairs, maintenance and upkeep. When we first met he mentioned finding a senior apartment to rent, but after further discussion he has stated that he would really like to be able to stay in the house and rent it back from me after I buy it. 

I am not opposed to this if I can structure a deal that is truly a win-win, but I do not want to have to lock up a bunch of cash on this property. I would need about 20% down to buy it as a rental property if using a typical mortgage. I'd rather not have to tie up that money, so was thinking I might be able to negotiate an owner finance scenario. But, I have never done so where the seller wanted to stay in the property. Has anyone done this and if so, how did you structure it?

[Davido Davido]

@Braden Smith, There was a real estate investor in WA State, Joe Kaiser, who routinely bought the homes of people facing property tax foreclosure and let the owner's stay in them.  He published a fascinating blog of his interactions with the sellers which may have helpful ideas regarding structuring sales where the seller stays in their home.  Be aware that the Joe Kaiser blog is primarily his response to being sued by the WA State AG for alleged violations of Consumer Protection laws. His blog is, 

http://www.pushedtoshove.com/

Joe Kaiser has always maintained that the State had not received any consumer complaints about him.  He claimed that seller's who worked with him faired better than they would have if he had not stepped in to save their property from tax foreclosure.  Joe claims the real impetus behind the AG's lawsuit was that multiple WA counties where losing hundreds of thousands each year in overages because his company was removing many properties from pending tax foreclosure.