Best way to structure a purchase

[David S.]

I've got a seller interested in working with me. They purchased in 2004 for $168k, and say they only recently are no longer underwater. Don't have details on current mortgage. Based on rates at the time and 3.5% down, they might owe around $125-130k. Nearby very good comp is at $150k. Seems like if I can pick it up as a lease option, contract for deed, or subject-to, would be a good deal. I do need that mortgage payment amount.  This would be a low equity deal for me, but could be a low money down way to pick up another rental. Additionally, our market is rapidly climbing. I could see it increasing in value from $150k to $165k in two years, if the market keeps going like this starter homes are scarce.
 

The seller plans to sell this along with another property to purchase a new home. They're estimating getting $10k from this property, though I think that will be negotiable. Need to talk to them about realtor's fees, etc.  

What would be the best way to structure this to help the seller?