Tenant offers to buy but cannot secure financing

[Anran Wang]

Hi my experienced friends, I recently ran into a situation. 

I have a cheap rental property in Indiana valued below 40K. The tenant offered to buy but he cannot find a bank that is willing to lend this small amount of loan as conventional loan and the interest rate for personal line of credit is too high.

Any suggestions for me to solve the situation?

I can think of owner financing and lease to own. Has anyone done either of these as the seller? What are the pros and cons?

Many thanks ahead and happy new year!!!