John,
Each situation is unique. As others have stated there are risks involved in any transaction. Selling your home is probably the least risky in terms of your ability to buy a new home. If you choose to rent, keep in mind that some people who rent do so because their credit history prevents them from doing so. They may pay late or not at all. In addition, at the end of the lease, be prepared to make repairs. I've had to replace all the carpet and repaint after renters left before. The lease to own option depends on how well you are able to write a contract that protects you but that the other party will still accept.
Your best bet is to contact someone who would be able to answer your specific questions. I'd suggest a real estate attorney and/or a Realtor. Both will give you the the info necessary to make a decision.

John
Tim gives some great advice.
The main thing I would ask is "why are you thinking of selling". I recommend sitting down with your CPA and looking at your options.
1. Can you move to your new home and still keep this one as a rental
2. If you do keep it, what will your after tax picture look like
3. What will happen if you sell and buy

I was in a situation where the market had shifted, we could not sell for what we owed, so we retained a property as a rental. In the short term it was stressful. In the long term it was a great investment.

Good luck

First - How it works: Usually you will charge a larger amount for the rent than normal, but with the understanding that a portion of each month's rent will be applied toward a down payment at the end of the year or two year term the lease is. So if you would rent it for $1500/month, now you rent it for $2000 per month, but $500 of that each month would be applied towards the buyers down payment. At the end of the year they would have given you $6,000 already as a down payment. Usually, if they end up not buying the home you, as the seller, would keep that additional $6,000 but that depends on the terms you work out with them.
Second - a risk to take into consideration is that you do not know what interest rates will be in a year or two or what new loan guidlines will be utilized at that time so there really is no way of knowing for sure if these renters will in fact be able to buy your home at the end of the year.
Another risk is as what was said below...you have to make sure you have enough equity in your home or cash on hand for a large down payment on your new home. Most banks will require no less than 80% Loan To Value on an investment property. And if it doesn't work out half way through, will you have enough income to carry both mortgage payments.

Perhaps the biggest consideration is whether you can qualify for another mortgage on the new home without the equity in your current home? Then, do you have sufficient income to support both mortgages? Lenders will generally discount your rental income by 25% so you need to charge 125% of your current PITI payments on the property you are renting to avoid it draging down your income eligability fo another mortgage loan.
http://www.rtohq.com/apro-rent-to-own-legislative-activity-a…