Investing with a Current Landowner

[Chris Spradling]

First let me start by saying I'm very green to the thought of rental investment, but very excited and eager to get it started. I'd like to get others thoughts on the below possible opportunity and how to approach it. 

A friend of the family is looking to sell their parents house that passed away. Mainly because of the memories and not interested in the idea of being a landlord. The property is a duplex with both units being 2BR/1BA, at a asking price of $125,000. The house is very nice and will need very little invested, maybe $1,000-2,000 for paint and minor things. What I'm considering but not sure how to go about it is offering to do a partnership and being the property manager and them having absolutely no involvement with the property, but they're receive a monthly check. And with this being my first opportunity, coming to the table with the least amount of money. I feel like this would be good way to get in my feet wet and learn. But what kind of deals should I offer? I'd like to give them options, so below are some I've thought about. 

-Local rental rate for 2BR/1BA $600-700, with renters covering utilities.

- 50/50 ownership, finance 1/2 of the asking price and split everything 50/50

- 60/40 them/me ownership, giving them $10,000 down and splitting it the same way 60/40

- Owner finance, giving $10,000 down and paying them monthly payments for a set number of years before completing a refi.

I would love to hear how everyone else would approaching this, and offers you would suggest. Thanks for your time!