Rent to own or hold out for full sale? Need selling critique

[Michael Bingham]

I purchased a 3/1 for $52,000 and I have added another full bath making it a nice 3/2. It sits on just under an acre lot in a great location. Its been sitting for a few months at $133,000. I recently met with my realtor and he's advised me that market value might be closer to $120,000. I have about $24,000 into the flip, so the margins are still excellent. I have two very interested parties that came to me when I had it FSBO. I had them written into the contract with my realtor that if they bought, then they would be excluded from from him listing the property.

One party needs to still sell their house and I can't get them to commit otherwise. The second party has been very active and now wants to purchase the property at $130,000. However, she can't apply for her VA loan until July due to having used it in the past year..etc. She is willing to put $5000 down, non refundable, and then pay rent leading up till July when she can apply for her loan.

My thinking was this: I could do a LTV 70% on the property, which would make me liquid from the flip. Then set the monthly rent to cash flow in my favor nicely, according to the loan. Then if she is unable to secure her loan in July she would be entitled to a one year lease and then set a balloon of some sort on the payments to give her incentive to find financing sooner than later.

This would be the first time I would enter into renting a property, I've only flipped them to date. I'm looking for any advise or critique going forward.

Thank you ALL as usual