I would recommending looking at your property through the eyes of the NBA, or Next Best Alternative, to see if there is a market for you property as a mid-term rental. 

Are there any red flags I should watch out for when dealing with buyers who propose alternative arrangements like this?

In the alternative, everything seemingly goes well, he has lied on his application (very dumb move) which you don't control and down the road a year or two you get a "knock, knock" on the door from some very stern men who want to talk to you about the transaction.

(I realize there are alternate structures - this is how we are doing it.).

To me the cost of purchasing cash flow is too high, better off being cash negative 2) alternate rent models: mtr, str, rent by room.  

.- Plan: eliminate AMT - Alternative Minimum Tax.

Alternatively, you can look into filing an affidavit.For the court hearing, be prepared to have all dates and proof to show the judge non-payment and any dates/times you interacted with the tenant.

YoutubeTV is a great alternative to cable for local news, sports, over-air stations, etc.

Compare these with potential financing alternatives, like a DSCR loan or other commercial products.Exit Strategy: What’s your long-term plan—hold for cash flow, refinance, or sell?

Its return is achieved due to an alternate rent model.