Any suggestions on how to structure this deal?

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I am planning on making an offer on a house that's probably worth about 165,000. I can have it for 128,000 because the seller is a friend of mine and that's what he wants for it. He will take a forgivable second mortgage. So I was thinking of offing him the 140,800 for the property, getting a 128k first and having a forgivable second of 12,800. The property needs about $5000 in work. I'd also like to pay $500 in closing costs for the seller and have him write me a lease for $1 until I close. So I can show the property to renters and clean it out. Is there any way for me to walk away from the closing table with the cash for repairs. ($5,000) I'd like this to be a no money down deal. Thanks.