One of my tenants is interested in buying the property she lives in, but can't do it through traditional means. The property has two houses each bringing in $700/month. It is worth 200,000 or so. I want to explore different options since. My ideas so far have been:
-Lease with option to buy. Agree on a predetermined price. My tenant pays an extra sum each month (2-300). At the end of 3 years (or whatever) she can use the extra payments as a down on the house. If she pulls out early or can't commit at the end of term, I keep the extra cash. If I pull out early (because I need to sell), I pay her back the extra she gave me.
-REC, she puts down a small amount (1-3%) and I do a 5-7 year balloon schedule at 7.5 or 8%. In this situation she would collect all the rent from the whole property.

Only problem with the second one is, what if I want to sell early for whatever reason?

I don't currently have a mortgage on the property, but might refinance to purchase other properties, how does this figure into the equation?

Thanks