Posted by JohnBoy on July 04, 2002 at 12:05:54:
Would the seller be paying you any rent for living in the guest house?
If the seller will be living in the guest house rent free then the way to set this up would be to lease the main house from the seller while getting an option to buy the entire property that includes the guest house. Just include language in the option agreement that states the seller will vacate the property upon the optionor exercising their option to buy the property.
I personally don’t like this idea of having a seller living in guest house while having some tenant living in the main house. I can already see problems with this! The seller may have problems with the way the tenants are living in THEIR house! Any little thing the seller sees that they don’t like about the other tenant, they will be bothering that tenant and/or bothering you constantly over it! Before you know it the seller is wanting the property back, and/or wanting that tenant out of THEIR house! Then before you know it, no matter WHO you put into the main house the seller finds something wrong that they don’t like about the tenant, blah, blah, blah!
Do you want those kind of headaches???
It would be better to have the seller just move on! Since you have a guest house that you can rent out for additional money then offer more to the seller that will give them some extra monthly cash to pay towards renting something else!
Then you can either L/O the main house for a lot more money where that tenant can rent out the guest house to someone else IF they want to, OR, L/O the main house to a tenant where YOU can rent out the guest house to someone else for extra money to where if the tenant on the L/O exercises their option they will have to buy the property by having to honor any remainder of any lease a tenant leasing the guest house has with you. Then once that tenant’s lease expires the buyer can renew a new lease with them or have them move out if that is what they want! But at least you don’t have to risk a bunch of BS problems with a seller that sees every movement going on with some strangers renting their main house from you!