Opportunity - first buy

[Steven Arnold]

Hello BP community, 
I have the opportunity to purchase a 2 bed 1 bath ~800 sqft home within a few miles from me. The owner is a REI but does not live in the area nor has a PM. currently rents it out at $600/month. He is asking $108,000 for it. Although the bones are good it needs some work. Cabinets, floors, plumbing, electrical etc. This home is smaller and cheaper than anything listed within my area, where there is a housing/rental shortage. La Crosse, WI area. I'd like to purchase this property but offer below asking price, any idea on how to proceed respectfully in this situation with the owner? Is this not a good first buy for my portfolio?