Owner Financing

[Brian Callan]

Hi Guys,

I have a tenant that has an interest in purchasing my home that they are currently renting from me.  Their credit isn't up to par to get a traditional mortgage and wanted to know if I would owner finance them.  They have paid rent each month but do occasionally get it to us two or three days late for the previous year.  Every now and then they come up with an excuse to be late and we hold our ground and force their hand to pay us the rent.  They always end up paying as requested.   

We do want to sell the house.  I have a good bit of equity I plan on turning into a few more houses.  

What are my options with this tenant?  What are my risks/rewards to owner financing?  And should I consider a lease to purchase agreement instead?

Thanks for your time,

Brian