Newbie with a motivated seller

[Joe KQwen]

Total newbie, considering cashflow, appreciation not really considerable in this area.

In talking to the owner of an off market SFH that he rents to his daughter he tells me the house currently needs repairs he can not afford to make and is looking to offload the house but wants it rentable to his daughter still. (Neighboring houses)

Current mortgage is about 34k

FMV is about 50k, taxes 3360, rent is 1k/mo

house needs a boiler and roof repair. I'm guessing 12k or less.

In the perfect world I would just take over his mortgage (and he wants 5k to repay DP lender.) And use my cash to fix. But I read assuming mortgages is tough,and a 40k mortgage is just as tough and adds to costs.

 I could pay cash for the note and leverage the repairs, but I'm open to ideas.

Also beings she wants to rent it indefinitely, should I consider a 5 year lease with 2% yearly increases?