Opinions on lease options

[John D.]

We are working on finalizing our first flip in New Jersey and were approached by a prospective buyer who happens to be renting from us currently at a separate address.  He is interested in a lease to purchase agreement.  I am interested in hearing how the BP community would potentially structure this deal, what are some of the drawbacks?  Would selling property this way work out better for tax purposes? 

A bit of background on the buyer:

Good tenant..pays on time and takes care of the rental property he is in now.  No W2 income so he cannot qualify for traditional financing.  Has roughly $10K to put down toward the purchase. 

Comps in this area range from $130K-$145K.

I'm looking forward to any/all ideas!!  Thank you.