As a rule; I warn BUYERS about entering into a LEASE/OPTION:
The pitfalls are many and deep.
In this case, you are the one who should have been aware:
It sounds like you do not have the Lease/Option in a CONTRACT?
Shame on you; doing something like this on a VERBAL AGREEMENT!
Is sounds like all three of you were trying to take advantage of the situation:
The Upstairs people will probably be without a place to live.
The Tenants will lose their place.
And you are going to lose a LOT!
Good luck and may God bless