We made a verbal agreement on the terms of the lease and I will be sending him a more formal written agreement for him to sign before the people move in.I am wondering if you all have any suggestions on how to handle this type of lease agreement.

Many counties are bound by "inter-governmental agreements" which obligates property within a proscribed radius of a municipality (city, town) to formally annex itself from the county to the city or town.

Lenders will expect a more formal plan but if it is only to get your own ideas on paper then just start writing,scribbling, drawing or use a Mind map software like mind jet. 

I always make a verbal 1st, to see if we are in the ballpark then go to formal agreements, Never an LOI, 

😳judicial sale- 4.6 acres with creek running through the back with 3bed/1bath house for $8750 and 1/2 of a duplex for $2,000.

Now that guy up in Seattle who did the barrel rolls in the Q 400 now that was something.. and there was a kid called the barefoot bandit who had no formal training in flying that would steal Cirrus airplanes ( the plane we fly)  you can kill yourself real quick in those but somehow Darwin theory never evolved for him and he ended up in Jail.The state wants to make an example out of you for violating the laws on the books and you can count on draining your savings..

I've been saying for a long time that the key to success is not formal education, but knowledge.

This means lender cannot collect a deficiency judgement in the event of a judicial foreclosure.

You would form some sort of legal entity / business structure to formalize the deal whether it be some sort of partnership, LLC, C Corp, etc..

I purchased a home at Judicial tax sale over 2 years ago and have a standard Tax Claim Deed.