Potential tenant was to Rent to Own

[Eric Mcginn]

I have this great clean little 1bd 1ba SFH I'm closing on a nice street in a so-so neighborhood in a very expensive county. It's the most affordable house in the county at the moment to my knowledge and I've placed an ad for a reasonable rent which is receiving lots of interest.

I have several excellent options for potential tenants lined up. 
One of which is interested in a “rent to own” situation. Their income more than qualifies them as tenants but they are young with limited credit. 

I was surprised by this inquiry and hadn’t considered it before. 

What are the pros/cons? 

Purchase price is $140k. Rent is set at $1500 with tenant paying all utilities.