Newbie investor advice

[Matthew Smith]

I will start by saying I am a new investor and am casually browsing for deals but admit I am by no means experienced. I found a property that is a for sale by owner property (4 bed, 2 bath), it was listed at maybe 1/3 of the price of typical houses in the area (I live in the area so have somewhat of an idea on prices). I reached out to the owner and he is requiring a year rental before purchasing. I ran the numbers including a hefty chunk of repairs even though the property appears in decent shape, and it seems like a great deal. However, being new to real estate investing I feel like I am missing something, I don't understand why the hefty discount and why the rental clause. Has anyone seen something like this before? Am I missing something or is this a good deal?