Lease to Own SE Michigan

[William Ware]

As I'm still investigating my options I thought I would submit my questions.
- Currently own a 2/2 condo with no mortgage. Same tenant for the last 18 months at $825/month.2005 price of condo new 116K I paid 20K cash. Current value based on recent cash sales $40k. HOA fee's $160

- The tenant has asked if I would be interested in selling and holding the note. This is an area that I'm still educating myself on. What terms would I ask for? Should I sell or continue to rent? Here are some of my initial ideas.
20% down on a selling price of 40-45K
5 year balloon
6-7% interest
This would be right around a $220/month mortgage
Do I add this to the monthly rent or drop the rent down to $600 and add the note of $220 keeping the total monthly income the same? Thanks for your help.
Bill