Negotiating an off-market historic home, advice requested.

[Clint E.]

Hello BP,

I found an off-market duplex and have contacted the seller.  I have seen the inside of the home during an open house over a year ago when it was for sale.  It has since been vacant - whatever the owner's plans for it, they stalled.  I want to purchase and have the financing lined up at the bank and the cash in savings to close.  The buyer is late 30s, married, has kids and his own accounting business.  Clearly, he doesn't have time or interest to manage this property.  

The house needs repairs and upgrades, but I will have to do that out of pocket as I can't get a 203k loan (I have a FHA on my current house which I plan to keep as a rental). It needs some tuckpointing, repainting of brick, floors, paint, appliances, HVAC in the next few years, possibly windows, electrical upgrades. When it was listed for sale over a year ago, it was listed at $109,000 and taken off the market after 7 months. ARV on this property could be from $150-180,000 but the price per sq ft varies wildly in this zip code and neighborhood.

I'm looking for some pointers in negotiating with this seller and some what to look out for (for either this seller or historic homes).  

Thanks in advance!