First Time Seller Financing question

[Kyle Desimone]

We have an opportunity to acquire a single-family property from my family and are going to pitch seller financing. This will allow us to rent our current home in a hot market. Hope is to pitch a lease-option and be written into the will, or a lease option with a timeline to purchase at a set price in XX years. 

My questions about the financing option are, how have people documented this transaction in the past, are there good legal documents, or have people historically written them up themselves? How does insurance work in this scenario, should we get our own? And how would one finance a rehab on the property using this method of purchasing the home? 

This sale (without a conventional loan at this time) will allow us to get our LLC off the ground without immediately using our credit and allow us to save more cash in the long-run for down payments on multi-families. Also, exit strategy is either Air BNB (property is on a lake), live here permanently as our primary residence after some rehab (residence is livable right now), BRRRR, or house-hack and sell in a few years.

Thank you!