hey guys, we have an interesting scenario. a seller accepted our offer on a property, the only problem is the tenant has a life estate.
what options do we have to move forward with a sale? any creative ways to purchase or is it just a waiting game?
Oh that could be a tricky one. Typically it is just a waiting game, depending on how the life estate is worded. Can the new owner build on the property? Could they subdivide it if there is space? Some life estates only grant permission to live in the home until death but allow the owner to use the rest of the property as they see fit.
I am not sure if it is possible to “buy” the rights to the life estate. If the person with the life estate no longer is interested in the property, it may be possible but I would seek the advice of an attorney to make sure and handle the documents if possible.
good questions. im going to find out and i’ll post back if i get answers 
Life estate means that the tenant has a lease for life OR until the tenant decides to move out. This can be a good thing depending upon the tenant’s age and condition of the property.
Understand that rental property investors don’t buy a rental property, they are buying the cash flow the property generates. If the tenant is paying $500 per month rent, or $6K per year, and, after taxes, insurance, maintenance, upkeep, etc, the net cash flow is $5K per year, then a cap rate multiple of 10% suggests that the value of the property is only $50K.
Maybe this gives you negotiating leverage with the estate administrator.