Do I treat lease to own income as Rental income in the year it is received. Take expenses yearly like a rental property.
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Lease to own sounds more like someone bought an asset and is having it financed by the former owner.
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And I'm thinking "rent to own" is more a service & goes on Sch C.
Plus I vaguely remember that the accounting for "rent to own" business is a wee bit complicated.
I would take a look at this article on lease options. May be classified as an installment sale.
https://www.ccim.com/cire-magazine/articles/lease-option-or-installment-sale/?gmSsoPc=1
I have considered it a Schedule E rental because too often the "buyer" walks away from the contract after a few years.
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