Mix and match

From what Im understanding, you have a seller that wants to sell to you but needs the money to put down on the new house buts its not ready yet, correct? I'm guessing you can purchase the house from them then rent the house to them on a month to month lease until the new house is ready.

you can't do a L/O because the seller will then be tied in to a contract with a new buyer until their option is up; also, the seller wouldn't be able to refi his house once you put it in a L/O, so he wouldn't be able to pull out any money to buy new house.

I agree with Rey, find a buyer that will buy the property and lease back to seller for x amount of months while he finds his new home...

If the seller needs the money for the new house, depending on how much it is, it can come from one of 2 places.

The seller can put a new first on the free and clear house he is living in and stay there and make payments on the loan until he is ready to move at which time you can L/O the house and make the payments
or
You can get a private party (or partner) to loan on the free and clear house with a low LTV first which the seller can use for the next house. Have the seller carry back the second at terms that would let the property cash flow and rent to him until he is ready to move, then L/O it.

You can offer your pvt lender/partner the option money as pre paid interest with no monthly payments and you keep the cash flow or vice versa. If the option money isn't enough, you can offer him some monthly payments. If you have a $100,000 house and you can get $10,000 option money that's 5%/yr prepaid interest to your private lender. Be creative.

L/O doesn't have to be your only exit strategy, if the terms are ok you can buy and hold and rent.

Of course, the above scenarios are dependent upon having a sufficiently motivated seller.

All great id need to move out.. how much money do they need to move out? What is their problem?

They were hoping to use the money from the sale of home #1 to build home$2. The floor is still open.

Not knowing the numbers, it's hard to come up with a solution. How much is the present house worth, what's the ARV, how much will they take for it, how much do they need to build their new house, etc? Sometimes there just isn't a deal to be had if the seller isn't sufficiently motivated to sell. Sounds like they are in no hurry to sell, time is not a factor to them.

$146,400 Investors add $3K assignmet fee. ARV $167,784 SFR 2200 sqft. Built in 2002. $850/mo. max area rental. Can be rented out with present occupants for next 15-18 mos.

I love your solution!