Help with a deal that is out of my league

[Ryan Baker]

I'm a newbie from Sarasota, FL.  I currently own one rental property that has been a bit of a headache but I've been hanging in there for a while with it.  Beyond that (and my primary residence), I don't have much real estate experience.  I was piddling a long, up until about 10 months ago when I really started getting motivated to pursue real estate investing for long term wealth.  I've read books, viewed webinars, purchased a pro membership, and saved up to buy, and have kept fighting along with, my current property.  

In my primary residence, I have a vacant lot next to me, and an old house that needs work in the lot next to that one.  Today, the owner of that house drove to my house, and knocked on my door.  She told me that the tenants are a nightmare, and she is 74 and wants to get rid of the house.  She told me it has a new water heater, needs a new roof, is small at about 900 sq ft on a 1/4 acre lot.  She told me she'd want about $175,000 for the house.  Zillow has it's value at $226K, but that's got to be high given all the work she made it seem it needs.  However, homes in this neighborhood routinely sell in the low $400 range, so I'm sure there has to be a deal in there somewhere.

I definitely do not know how I can go about structuring a deal, and all I have from her is a starting price and a phone number.  I would definitely appreciate anyone that can help walk me through this, as I clearly have no idea what I'm doing.  I definitely don't want to waste my, or anyone elses, time, so if there's nothing here, I'd appreciate that input as well.  

Thanks in advance for any tips!!