Rent to own Plot of Land

[Cassidy Burns]

Hi BP,

I recently purchased a single family home that had a separate parcel of land on the property.  I am financing this property.  I am currently renting out the single family house and the neighboring house wants to purchase the parcel of land from me in a rent to own contract.  We have came to the terms of $3000 over 36 months charged at 12% interest.  So he will make payments of $114/month until this is payed off.  How do I go about structuring this?  What documents do I need to fill out to make this legal and credible?

Any help is appreciated as I am completely lost in this topic.