Lease to purchase house in Phoenix, AZ-as a seller?

lease option is better than land contract in most states because you do not need to foreclose to get the tenants out. its a regular eviction, which is simpler than a foreclosure.

The tenants are tenants until they exercise the option to purchase. So you typically treat it like a rental deal.

Some tenants like it better than renting because usually a portion of the rent goes toward the purchase price, but that is entirely up to you and the tenant in terms of how much and under what circumstances.

A lot of lease options fall through and the tenant moves out and never exercises the option to purchase, so if you can negotiate a higher rent for the place with a percentage of the rent going toward purchase if the purchase happens within a certain time, you often just get to keep the extra rent, but you don't end up with a sale.

I would ask for at least a 3-5% upfront, non-refundable, downpayment plus a letter from a reputable lender stating all conditions needed to be met for a loan approval along with a estimated time of when that might be. As an incentive for the buyer suggest putting away 150-200+ of their monthly rent towards adding to their down which will be lost if they don't find their own loan in the allotted time. You do take a big risk by financing for someone but if you're careful and think of all the angles it could be an option. Alot of people just need a couple of months to get their stuff(credit) together. Sorry-I don't know about the eviction laws in your state.

Have you thought about offering to pay down the buyer's interest rate through discount points? It saves them thousands, if not tens of thousands through the span of their loan. It will set you apart from the usual "$X,000 for Buyers Costs".