Setting up seller finance with balloon payment

[Ross B Adams]

Hi there! Instead of listing a property I'm flipping, I want to sell with creative financing to my contractor. He doesn't qualify for a loan right now but thinks he will in 12-18 months. There is no mortgage on the property, we own in outright. 
Here are my questions:
When he gets a loan in 12-18 months he will still need to have a down payment for that loan, correct? 
Would it be better to set up a lease option with a portion of the monthly rent going to the purchase price of the home and him paying for any maintenance...
OR seller finance by amortizing the loan over 30 years and him paying off the remaining principal. It seems too complicated to transfer the deed to him just for 12 months then if he refinances what if he can't get all the cash out needed to pay the balloon payment? 

If we keep the the deed in my name and have a lawyer draft up a contract with amortized rent payments "as if" we were setting up seller finance, would that be ok? 

Of course, I understand the risk of him defaulting on payments or not being able to get a loan...in which case we'd have to either refi and hold or list and sell. He understands that too. 

I appreciate any advice! 
Thanks

[Eliott Elias]

He will still need a down payment, it will be deducted and applied to the next down payment when he does a cash out refi. I would keep him on the loan as long as possible, if you're the bank you will make a lot more money.