Rent to own aqIs this a good deal

[Joe Doman]

I have been working with a seller on a property. I offered a lower cash offer and they did not seem interested. I mentioned a rent to own situation with a larger purchased price and they seemed more interested. Here is what I was thinking

135k purchase price (market value)

5,000 option fee applied as credit if exercised

1,200 monthly payment, 400 applied as credit if exercise

7 year term

1,450 is market rent.

Seller pays taxes and insurance.

Property is rent ready.

What are your thoughts? I was thinking about selling on land contact, rent to own, or just rent.