5 year leaseback idea of dream property

We are thinking of making an offer to purchase cash a home that We do not need to occupy until 5 years from now. The home that is there is something we would most likely tear down and build our "dream Home", as it is the location we want.

The couple that is they are today is elderly but I get the sense that they may be selling a some point, but aren't in a rush. If they would sell it to me today I would take it, but I don't need to occupy it as a said for up to five years.

Our idea:
Offer to purchase the home for a fair market value. Have a rental agreement that allows them to live in the home up to five years. They would be required to pay taxes, Utilities and insurance. They would not have to pay us any rent amount. Effectively they get to live in their same home rent-free ( they do not have any mortgage payments today on that home ) and we lock in that property. It seems like a win – win. What am I missing and what else should I consider?

Thank you in advance for your help.
(0) | asked by: Dave Wright | share | 13 months ago | Report
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answer by Tina Landry    |   Visit My Website   |   Contact Me
Make sure you understand the landlord laws in your area. You will be required to keep the home in a habitable condition. So, if things need to be repaired for them to live their safety, take these into consideration.
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4 months ago  |   Report   |   share
answer by Robyn Renahan    |   Visit My Website   |   Contact Me
That is an interesting question and it does seem like it could potentially be a win-win. The first thing I would suggest you do is speak to a good real estate attorney and have her go over the potential benefits and drawbacks of doing this and, if the owners are interested, then have the attorney handle the paperwork for you to make sure both sides are protected. If you plan to finance the property, buying now would be a great idea while the interest rates are low. Good luck!
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11 months ago  |   Report   |   share
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