Hi,
It's clear that he wants more than friends..... and I have this gut feeling that you (well, slowly slowly, and you don't admit it yet) want it too..... so give it a real try. It's great that you are open, one to the other, and it would be an excellent idea to think about all he obstacles you'll surely face and decide (in advance !) what your approach will be. However, if you decide that you don't want to go that far (but remain friends) better tell it to him, loud and clear (well, you'll have to be smart and sensetive) and you'll have to set the limits. An open person will always appreciate openess and truth.... Personally (based on my intuition) I would advice you to consider the 1st option, man like him are scarce.....
Best regards,