Yes, screening and tenant selection are key but they are not perfect and people and their circumstances do change.In California, tenants can break leases with minimal consequences.The only time I do a long term (6month / 1year) lease is for special circumstances or if the owner really wants me to do that. 

Makes perfect sense.

See, in business, there is the strange 'truth' concept that is contradictory, but makes perfect business sense.something like: Banks won't lend to people that don't have money and need it. 

The joint venture agreement might be perfect - I was thinking of some kind of alternative agreement with the buyer or seller.

Selfishly, I want him to stay closer to home so Dam Neck/Oceana would be perfect ;)Best of luck to you and keep us posted here on your journey!!

Add no 3rd party oversight and you get a perfect storm.  

Financial Details for 7 YrsHouse purchase + renovations:                        -$205,000Projected landlord costs:                           -$ 80,000Projected collected income for lease to own:  +$408,400Net potential Gain:                                            +103,000SO,although this is a long way to sell an expensive house in a not so perfect area, bucking the location, location, location rule, the new homeowner will control 3 building lots, plus the extraordinary basement apartment, after 7 years of payments plus refinance.  

As I thought about it, maybe a "LEASE OPTION" is a perfect way to get them in the house and take very good care of it as they would eventually plan to buy the home  I would close on the house and agree to the lease option at the higher sales price and they would rent from me until they were in the financial position to buy it from me Any thoughts on pros / cons?

In the case of the older applicant if you believe he will stay a long time make sure he is the perfect candidate.

However, it is perfectly legal with an agreement called a pass through agreement that the parties involved all sign.