Direct Marketing - First call = 88 year-old who owns 50+ houses

[Nick Horob]

I recently started a direct mail campaign in Fargo, ND.

I received my first call today from an 88 year-old investor who owns 50+ houses in the area.  We had a very good, lengthy conversation about his background.

He's interested in selling a house for $139k that would rent for $1,100.  I'm targeting gross rents of 1% or more so this doesn't meet my target.

I'm thinking about calling back and offering him a $110k all-cash deal and simply explain my rationale.  I want to build the relationship while maintaining fiscal discipline.  

Any suggestions on how to handle this situation?  TIA