Searching for guidance on purchasing my neighbors house.

[Heather Dane]

My neighbor has decided to sell us his house. We are not using a realtor for this purchase. We are in the Denver area, comps in this neighborhood are about 370-380 up to 420 for a fully updated house. His house has not been updated in the 25 years he has been in it. I have a few questions. Could we write an offer for 2% less than whatever it appraises for? He would be saving money by not paying out a realtor and we would get a below market price on the house. My second question is, would it be better financially to move into his home and remodel it and make it our primary home while renting out our current home. Or get his house updated and rented out?

Any suggestions well be helpful