Commercial Lease to Own - help with the numbers

[Julie Gates]

I'm a commercial agent in Savannah, GA. I have a client willing to seller finance, but the property is in a rougher area. The property is zoned commercial. I have two potential tenants who would love to lease to own. Neither is qualified to buy outright, so they need to use this option. The rent on the property would be $1,600/month. But if they want to lease to own, how do I establish the additional amount? Also, how do I establish how much of the additional income goes toward the principal pay down? Do you typically set it up with a 5 year balloon? I would love any thoughts you have. I want to protect my client first and foremost.